How thirsty is the crowd? Alcoholic beverages & crowdfunding

Congratulations to Chapel Down, the British Winemaker, that raised £1.7m earlier this week from a share placing and crowdfunding campaign on Seedrs, well exceeding its original £1m goal. The funds are to be used to build a new beer and cider brewery for its Curious Drinks business.

This success got us interested in analysing other crowdfunding raises for businesses producing alcoholic beverages (breweries, vineyards, distilleries, etc.) to see the level of crowd financing that is taking place. Restricting the analysis to successful raises of over $10,000 from donation, reward and equity crowdfunding in the last year, we found 163 campaigns across 19 platforms.

We grouped the campaigns into 3, based upon raise amount (under $100K, $100k — $1m and $1m plus) and mapped them out on a scatter plot of raise amount versus target (as shown below).

Note, on some platforms, failure to reach target does not stop a project being successful, so long as they have passed a minimum target threshold or taken advantage of flexible funding. In both cases, they are able to receive the funds raised.

135 of the 163 campaigns raised under $100k, with an average raise of $24k. 128 overfunded, 5 underfunded and 2 met their targets exactly. The funding type was predominantly reward based, with only 2 financed through donations and none from equity.

21 of the 163 campaigns raised between $100k and $1m, with an average raise of $374k. 11 overfunded, 8 underfunded and 2 met their targets exactly. The funding type split was 67% equity and 33% reward.

Finally, 7 of the 163 campaigns raised $1m or more, with an average raise of $3m. 5 overfunded and 2 underfunded. The six raises that crossed the $1m milestone (6 equity, 1 rewards) were Hambledon Vineyard, Innis & Gunn craft beer, Camden Town Brewery, Curious Brew (Chapel Down), The Cotswolds Distillery, Pico — Craft Beer at Home and Brewdog.

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