Member log in

Crowd-funding craft brewer gets to $700k target early

Blenheim boutique beer brewer, Renaissance, has wooed small investors to fill its order for $700,000 of new capital in just a week and a half, a quarter of the time the novel offer was open for punters to commit funds.

Offered on the Snowball Effect crowd-funding platform, Renaissance sought between $600,000 and $700,000 for a range of specific capital investments in new equipment and marketing efforts to help cement its place at the high end of the New Zealand craft beer market, as well raising as funds for exploratory export sales and marketing.

The company hopes to build profitable exports to Australia, Europe, the United States and Asia in a four year plan outlined in the short-form investment statement required under the new Financial Markets Conduct Act for small businesses raising small amounts of equity and seeking to avoid the costs and disciplines of a continuous disclosure and a full stock exchange listing.

Shares were offered with a $500 minimum investment at $2 apiece for 12.28 percent of the company through Snowball Effect, the first of two crowd-funding platforms to be licenced by the Financial Markets Authority.

Existing shareholders in the company cancelled $147,000 of reported profits retained by the company to make the investment "more attractive."

Snowball Effect first out of the blocks with an offering after the FMA recently granted its first crowd-fundeded equity licenses following a recent law change.

So far, the pipeline has been thin across all the contenders.

What's next after Renaissance?

Snowball head of platform and investor growth Josh Daniell says a second funding effort is close to going live.

"It's a film, with a dream team of director/producer/writer. I can't say much more at this stage until they're ready to announce to the market."

More details are expected later this week.

With reporting by BusinessDesk.

Comments and questions

A very good effort, and good luck to them.

This is great news! A credit to snowball and Renaissance. Hopefully it will encourage an eco-system of advisors (merchant bankers/accountants/lawyers etc) to start offering a turn-key service for small-medium business to get them ready for funding on this platform and continue to build investor interest, and confidence.

They could potentially look at the brand too. Feeling some improvement could be done there to reflect a NZ beer offshore.

This is terrible news. I've been busy moving and hadn't gotten around to putting in a bid. And now the offering's full.

Would not worry, I suspect you will be able to buy these in 2 - 3 months at a discount as some investors need to cash out. Almost always happens for listed companies and in this case there will be nothing to support buyside.

Suggest you tell the company you are a buyer at $1 - 1.50 and wait.