In the world of craft cocktails, Death & Co., with its flagship location in New York City, isn’t just a bar; it’s an institution. Known for lines out the door and cocktails that define modern mixology, the brand oozes excellence. Now, the bar is parlaying its reputation toward an unconventional source for capital — its most loyal fans and everyday investors via equity crowdfunding.
The company, under the umbrella of parent Gin & Luck, is offering shares at $2.13 each, with a minimum investment of just over $1,000. This approach stands in stark contrast to the traditional path of seeking capital from private equity or large family offices. For Death & Co. CEO David Kaplan, it was a strategic choice.
Don’t Miss:
Kaplan told CNN about his initial hesitation toward crowdfunding. “I was wary at first,” he said, but quickly saw the “incredible power” of a model that mirrored the community-driven growth of his brand. This isn’t Gin & Luck’s first foray into this space: a 2018 round of equity crowdrounding on platform SeedInvest raised over $2 million. Now, with a slate of new projects, the company is betting that its passionate customer base wants an even deeper stake in the company’s future.
A Perk for Every Size Portfolio
To sweeten the deal, Death & Co. is offering a menu of investor perks that read like a wish list for any cocktail aficionado. Starting at the $2,500 level, investors get priority reservations — a valuable asset for anyone who has tried to get a last-minute seat at one of their famously packed locations. The perks scale up dramatically with investment size: lifetime cocktails for $12, private cocktail classes and even having a cocktail created and named after the investor at the $50,000 “Signature Pour” tier.
Trending: Microsoft’s Climate Innovation Fund Just Backed This Farmland Manager — Accredited Investors Can Join the Same Fund
For the truly serious, the top-tier “Founder’s Perk” at $500,000 or more offers a chance to become a partner in launching a new Death & Co. location, or cocktail bar Close Company, which is also a part of Gin & Luck, creating a powerful incentive for those who believe in the brand as much as its financials.
Aggressive Expansion on the Horizon
The capital raised is fueling a significant expansion. Death & Co.’s timeline for 2025 is packed. The plan includes several ventures: new Close Company bars in Nashville, Las Vegas and Atlanta; a foray into hospitality with the 44-room Municipal Grand hotel in Savannah, Georgia; two major international outposts in Melbourne and Brisbane, Australia, launched through a partnership with Australia Venue Co; and a Seattle location funded by a $1.85 million developer budget.
The plans for growth underscores the bar’s shift from a single beloved speakeasy to a multi-faceted global brand encompassing bars, books, hotels, licensing deals and merchandise.
See Also: Are you rich? Here’s what Americans think you need to be considered wealthy.
A Clear, If Controversial, Exit Strategy
However, the investment proposition comes with a candid, and to some, controversial, exit strategy. As sobering discussions on Reddit highlight, this is not a liquid investment like publicly traded stock. Investors are not paid dividends but are promised a payout upon a “liquidity event” — namely, the company being sold.
Kaplan was candid with CNN about this five-year plan to “create significant value and then find a buyer.” When Quest pressed him on essentially wanting to “sell out,” Kaplan reframed the goal. “Part of my ambition…is to show that this industry can create phenomenal returns, and we can do so while maintaining the integrity of the product,” he said. To Kaplan, a successful exit will mean a proof-of-concept for the entire bar industry.
For accredited and everyday investors alike, Death & Co. is offering a unique proposition: a high-risk, illiquid bet on consumer taste. And for those who believe in the brand, it’s a chance to own a piece of the bar they love — with some VIP perks to boot.
Read Next: If You’re Age 35, 50, or 60: Here’s How Much You Should Have Saved Vs. Invested By Now
Image: Shutterstock
