What are the funding options available to breweries to help them grow, add value and become sustainable? And in an increasingly competitive beer market, how do you attract the attention of funders for your business?
While there are several funding options available to breweries, Crowdfunding has emerged as an effective and promising option.
Unlike traditional Angel Investment, in which just a few people typically take a larger share in a business, with Crowdfunding, a brewery can attract a ‘crowd’ of people, who may not have invested in shares before, each of whom takes a small stake in the business, by contributing towards a funding target.
The main benefit of Crowdfunding, other than raising much needed capital, is that it creates a strong network of support for your company. The equity model is especially good at creating ambassadors for your brand, promoting it amongst their networks, family and friends and often becoming returning customers themselves.
Although the rules differ from site to site, generally a brewery will pitch its product, set a fundraising goal and set a deadline for raising funds. Potential investors can review the pitches and decide if they would wish to participate. Breweries may also offer incentives to investors in the form of discounts and special offers.
How can you successfully raise funds via Crowdfunding? Here are my five top tips
- Choose the right site. Some Crowdfunders have a better track record working with drinks brands.
- Plan ahead. Start planning at least 6 months before you launch, build your network ahead, identify key investors. Do not leave it to the Crowdfunding site to find all your investors for you. Leverage all your family and friends and publicise it on all your social networks.
- A robust detailed business plan is essential, make certain you explain exactly how the money is going to be spent, explain the upside!
- For new companies to the crowdfunding platform, it is essential to line up investors ahead of launch so that the campaign kicks off with at least 25% or more of the required investment already pledged, crowd funding investors follow the crowd!
- Stay active throughout the campaign, be passionate, include images and a video to really get your message across, make certain you keep the interest going and have news items ready for each week of the investment cycle. It has to be worked at.
If you are a growing brewery with a track record or a vision that can catch the general public’s imagination then equity Crowdfunding may be a very effective way to obtain funding.
Join us at 2pm on Tuesday, 7th March at the Institute of Brewing & Distilling in London to hear more from drinks funding expert Gautam Goenka on what are the options for funding available to breweries and what it takes to raise funds successfully.
Gautam will share his insights on:
1/ Key funding options available to breweries
2/ Advantages and disadvantages of funding options
3/ Options most appropriate for various growth stages of a brewery
4/ How to maximize your chances of obtaining funding successfully
Register now to secure your place as ticket numbers are limited.
Ticket Price: £49 for 2 attendees or £30 for 1 attendee per brewery.