Crowdfunding a Brewery

In recent discussions, we’ve touched on the realm of Equity Crowdfunding within the context of real estate ventures. However, the scope of Equity Crowdfunding extends further beyond, encompassing a myriad of fundraising activities across different sectors. Today, we’re steering the conversation towards a frothy and flavorful avenue—the brewery industry. Equity Crowdfunding can serve as a potent brew to accelerate a brewery’s journey from nascent bubbling ideas to a full-bodied business reality.

How do you even get started?

Mystery Brewing Company, nestled in the heart of Hillsborough, North Carolina, pioneered the brewery crowdfunding landscape by venturing onto Kickstarter back in 2010. The idea sparked when Erik, the mastermind behind the brews, caught wind of this fundraising avenue through a buddy’s suggestion. The thought bubble popped with a simple, “Why not give it a whirl?” With nothing but a modest budget, Erik orchestrated a campaign pitch right in the cozy corners of his dwelling, which gracefully pirouetted its way into the hearts of 243 backers, accumulating a neat sum of $43,000. Although the funds garnered from the crowdfunding campaign merely brushed the financial surface, constituting about 6 percent of the total capital mustered, Erik recounts the endeavor as a validating voyage.

Right there, you can see that having a well-formed idea and even a low budget one can make their dream a reality with some effort around marketing and spreading the word.

Use Cases for Equity Crowdfunding in a Brewery

New Locations:
Equity Crowdfunding can serve as the keystone in opening new locations. By pooling financial resources from a crowd of investors, breweries can overcome the capital hurdles that come with expansion. This collective financial backing can cover costs ranging from leasing or purchasing property to renovation, and obtaining necessary permits and licenses.

Plotting Crops for Hops:
For breweries inclined towards a farm-to-glass approach, Equity Crowdfunding could finance the plotting of crops like hops. This not only guarantees a fresh supply of ingredients but also resonates with patrons who value locally sourced produce.

New Equipment Purchases:
Quality brews necessitate quality equipment. Equity Crowdfunding can facilitate the acquisition of state-of-the-art brewing apparatus, enhancing the production efficiency and the quality of the brews.

Expand and Hire More Employees:
As operations scale, so does the need for additional hands on deck. Equity Crowdfunding can underwrite the costs of hiring skilled brewers, marketing personnel, and other crucial staff members.

Fast Forward Your Business Plans:
Equity Crowdfunding is a catalyst that can fast-track a brewery’s business plans, be it launching a new line of brews, hosting events, or even establishing a loyalty program for patrons.

Convertible Notes:

• What are they?
  Convertible notes are short-term debt instruments that convert into equity of the issuing company during a future financing round. They’re a favored choice due to their simplicity and low transaction costs.
• How are they used?
  In the context of a brewery, convertible notes can be employed to raise initial funds without having to determine the company’s valuation upfront, offering an attractive proposition for both the entrepreneur and the investor.
• Why are they used?
  Convertible notes defer the valuation discussion to a later stage, usually once the brewery has a proven track record, thus potentially leading to a more favorable valuation.

Using IgnitionDeck as a Platform

IgnitionDeck is a revered self-hosted crowdfunding platform for aspiring entrepreneurs seeking to raise funds. It epitomizes the financial hub that business owners leverage to turn their brewery dreams into tangible ventures. Its streamlined interface, coupled with a targeted focus on crowdfunding, makes it a preferred choice.

Niching Down on Your Crowdfunding Platform:
Opting for a niche-specific crowdfunding platform or tailoring your campaign to accentuate the unique selling propositions (USPs) of your brewery can significantly enhance the appeal to potential investors. This targeted approach, supplemented by the robust functionalities of IgnitionDeck, can imbibe a strong narrative into your crowdfunding campaign, making it not just a funding drive, but a story of your brewery’s envisioned journey.

As we’ve journeyed through the potential of Equity Crowdfunding for breweries, it’s apparent that this financial model brews promising prospects for entrepreneurs in the brewery sector. The blend of community backing with pragmatic financial strategies like Convertible Notes, and the utilization of platforms like IgnitionDeck, crafts a pathway towards a thriving brewery venture.

If you found this article helpful and you’d like to see a series of posts about these types of use cases, let us know in the comments!