Dan Norris wants to turn the drinkers of his beers into investors in his brewery.
The co-founder of Black Hops Brewingis keen to use equity crowd-funding platform Birchalto raise further funds for his business.
"The sort of business we are in requires a lot of money to do what we do," he says. "Any sort of expansion to build a new brewery costs in the millions of dollars. As an entrepreneur I have always struggled to get people to invest in what I'm doing, the banks are really hard work and raising capital is really difficult, you often have to be an expert yourself."
Norris wants Black Hops Brewingto be one of the early businesses listed on equity crowd-funding platform Birchal, which launched in Melbourne on Tuesdaynight.
The platform is being spun out ofAustralian rewards-based crowd-funding platform Pozible and is founded byPozible co-founder and chief executive Alan Crabbe and former Ashurst lawyerMatt Vitale.
Birchal will be applying to the Australian Securities and Investment Commission for anewly created "crowd-funding service"licence.
From September 29 unlisted public companies with annual turnover and gross assets of up to $25 million will be able to issue shares to the public.
Get the latest news and updates emailed straight to your inbox.
This will enable retail or so-called "mum and dad" investors to take equity in small businesses and Birchal aims to provide a platform for this.
Crabbeand his team have spent over a year, under$500,000 plus "a lot of sweat equity", building the platform which will be open for early access from Wednesday and should have the first company profiles available within a month.
Crabbe says there are two majorbenefits for businesses undertaking equity crowd funding.
"Firstlyyou are building a very loyal customer base and secondly if you look at these consumer brands that are verysuccessfulthey are able to build a community of ambassadors and that creates word of mouth and foreveryconsumer brand that is very valuable."
Crabbe says there is a bigopportunityfor consumer brands and consumer businessesin Australia to leverage global trends.
We have people coming to the bar and asking about it, they come in and want to invest but they don't have hundreds of thousands of dollars so this sounds perfect.
"We are seeing consumer brands aregrowingas fast, if not faster than technology companies globally," he says."I think this is a space that tends to getoverlookedand tech companieseven like ourselves tend to get the spotlight."
Crabbe points to brewer BrewDog in the UK which was an early adopter of the equity crowd-funding model and was recently valued at over 1 billion.
For investors, Crabbe says the attraction is getting in early.
"They getaccess toearly stage businesses as generally retail investorsdon'tget access to these companies until they are at IPO stage."
Crabbe says interested businesses can register on Birchal and set up a company profile with basic details of what the business does and the product and services it offers. Companies can create an online pitch for equity or reward-based funding.
"When the legislation comes into effect on 29 September thesecompanieswill be able to run a campaign to either getexpressionsofinterestto raise funds or raise a round of investment," he says.
Birchalwill take a 5.75 per centsuccess fee on successfulraises and hopes to enable investors to invest as little as $100.
"With every raise there will be a minimum you have to raise and also a time frame inthe same wayPozibleoperates with an all-or-nothingmodel," Crabbe says.
Crabbepredicts within three years equity crowd funding will attract $100 million a year.
But he acknowledges it's not all upside.
"Of course these businesses are typically high risk, they are usually fast-growing scale operationsand generally the foundersmay have less experience than some of the bigger companies," he says."There is potentially a higher risk for investors."
Norris has just closed a funding round of $400,000 to expand Black Hops Brewing and says equity crowd funding would have provided a great source for this money if it was available.
Black Hops Brewing is three years old with five full-time staff andturnover of around $1 million a year.
"We have people coming to the bar and asking about it, they come in and want to invest but they don't have hundreds of thousands of dollars so this sounds perfect," says Norris. "We are at capacity at the moment, all the tanks are full and we have to expand to keep growing. I think it's a model that's going to bereallyinteresting in Australia."
- How to Crowdfund (with Pictures) - wikiHow - June 7th, 2018
- Property Crowd Funding - The Magic of Modern Day Investing - HuffPost - September 4th, 2017
- Getting Crowdfunding Fundamentals Down to A Science In Advance Of Campaign Key To Success - HuffPost - August 28th, 2017
- Dreamhost Crowd-Funding Legal Action Against DOJ - eWeek - August 22nd, 2017
- Woman who contracted E.Coli returns home from Turkey after crowd funding appeal - Glasgow Live - July 9th, 2017
- Africa's first impact-focused equity crowd funding portal founder ... - CNBCAfrica.com - July 5th, 2017
- Crowd funding campaign to save a two-year-old kid - Times of India - July 2nd, 2017
- Arrowtown musician Holly Arrowsmith crowd funding new album - The Southland Times - June 26th, 2017
- Ex-Googler Lina Gantar launches crowd funding agency in Manchester - Manchester Evening News - June 25th, 2017
- Crowd funding could be used to buy the long-vacant Bell Building downtown - Wyoming Tribune - June 24th, 2017
- Wyo. Sec of State unveils new crowdfunding platform - Wyoming Business Report - June 16th, 2017
- Wyo. Sect'y of State unveils new crowdfunding platform - Wyoming Business Report - June 14th, 2017
- Where is the crowd-funding for the destitute? - News24 - June 9th, 2017
- Florida education news: #HB7069, teacher diversity, crowd funding and more - Tampabay.com (blog) - June 5th, 2017
- BBB Has Advice Before You Contribute To A Crowd Funding Site - Newstalkkgvo - June 2nd, 2017
- Catapooolt all set to Catapult Crowdfunding in India with an Asian Record - Bizztor (press release) (blog) - May 19th, 2017
- Should you invest in Bitcoins, crowd funding, P2P lending? - Economic Times - May 15th, 2017
- Cork Foundation's Live Crowd Funding event - The Avondhu Press (press release) - May 6th, 2017
- Will crowdfunding get a synthetic biology win? - PLoS Blogs (blog) - May 3rd, 2017
- Impact Guru, GlobalGiving tie-up to scale crowd funding in India - Daily News & Analysis - May 2nd, 2017
- Plastc Card Is Cancelled: The Dangers Of Crowd Funding Tech - Forbes - April 29th, 2017
- Can crowd funding help scale up solar power for Africa's poor? - The Standard (press release) - April 25th, 2017
- Donate safely: Avoiding crowd funding scams - KXLY Spokane - April 20th, 2017
- Maharashtra schools raise Rs 216 crore via crowd funding - The Indian Express - April 18th, 2017
- Crowdfunding: affordable bee surveillance for hive health - Scoop.co.nz (press release) - March 29th, 2017
- Crowd funding: SECP warns of false scheme - The Express Tribune - March 28th, 2017
- Arsenal fan plots sensational crowdfunding campaign to BUY the club from owner Stan Kroenke - The Sun - March 23rd, 2017
- How to make crowdfunding work for you - Buffalo Business First - February 13th, 2017
- Crowd funding | ASIC's MoneySmart - September 17th, 2016
- Crowd Funding - October 23rd, 2015
- Crowdfunding - P2P Foundation - October 23rd, 2015
- Comparison of crowdfunding services - Wikipedia, the free ... - September 5th, 2015
- Fundraising Script,Crowd Funding Script,Crowdfunding ... - August 14th, 2015
- The Life Chest: Crowd Funding Video - Video - May 5th, 2015
- THIS TOKYO #FASHION BRAND GIFT CLOTHING & ACCESSORIES SURPRISE! #THIStm - Video - May 4th, 2015
- THIS LOVE #FASHION BRAND GIFT CLOTHING & ACCESSORIES SURPRISE! #THIStm - Video - May 4th, 2015
- THIS PSYCHIC #FASHION BRAND GIFT CLOTHING & ACCESSORIES SURPRISE! #THIStm - Video - May 4th, 2015
- THIS SUPER #FASHION BRAND GIFT CLOTHING & ACCESSORIES SURPRISE! #THIStm - Video - May 4th, 2015
- THIS ROADHOUSE #FASHION BRAND GIFT CLOTHING & ACCESSORIES SURPRISE! #THIStm - Video - May 4th, 2015
- THIS BEYOND #FASHION BRAND GIFT CLOTHING & ACCESSORIES SURPRISE! #THIStm - Video - May 4th, 2015
- THIS HEARTBREAKER #FASHION BRAND GIFT CLOTHING & ACCESSORIES SURPRISE! #THIStm - Video - May 4th, 2015
- THIS WWW #FASHION BRAND GIFT CLOTHING & ACCESSORIES SURPRISE! #THIStm - Video - May 4th, 2015
- THIS GENUINE #FASHION BRAND GIFT CLOTHING & ACCESSORIES SURPRISE! #THIStm - Video - May 4th, 2015
- True Colours Crowd funding Campaign - Video - May 4th, 2015
- THIS NEW YORK 2015 #FASHION BRAND GIFT CLOTHING & ACCESSORIES SURPRISE! #THIStm - Video - May 4th, 2015
- Armitage Dinosaur - crowd-funding video - Video - May 3rd, 2015
- Who benefits from crowd funding? - Video - May 3rd, 2015
- The Man Who Found His Freedom - Video - May 3rd, 2015
- Crowd Funding proof V1 - Video - May 3rd, 2015
- TEN FOOT TONE - New CD - TASTE GOOD - Video - May 3rd, 2015
- One Spark/Tamarin Fruits - Video - May 1st, 2015
- Crowd Funding Video- BROKEN ROAD (Short Film) - Video - April 30th, 2015
- Crowd Funding video San Jose Bike Clinic - Video - April 28th, 2015
- Domestic Violence & Abuse Help Break the Cycle - Seed the Books Crowd Funding Campaign - Video - April 28th, 2015
- LEARN IT | BUILD IT | MANAGE IT: FINANCING - Crowd Funding - Video - April 27th, 2015
- Crowd Funding- Habitat for Humanity Charity Trip to Cebu in June 2015 - Video - April 27th, 2015
- Annalakshmi on the swan Crowd funding 14 04 15 WM - Video - April 26th, 2015
- Beat Buddy Inside Story - Video - April 26th, 2015
- Engineers Corset Crowd Funding Video - Video - April 26th, 2015
- "Welcome to the Shop" -HPER Team Crowd Funding Campaign - Video - April 24th, 2015
- Toms Crowd Funding 32 SD 480p Copy - Video - April 24th, 2015
- Blake Lodge Centre, Plymouth Deaf Association - Crowd Funding - Video - April 24th, 2015
- Copy of Heart Vs. Head Crowd Funding Campaign-Final Request - Video - April 24th, 2015
- April 2015: Help Wall St for Main St Crowd Fund! - Video - April 24th, 2015
- Climate for Change Crowd funding video - Video - April 24th, 2015
- Sacred Foundations, Inc. Crowd Funding Intro - Video - April 23rd, 2015
- Specialty Beer - Video - April 23rd, 2015
- Crowd Funding Take 4 18 15 - Video - April 23rd, 2015
- Baby Got Wings / I Like Big Bugs - Video - April 23rd, 2015
- Evolution of Color in Australian Frogs Crowd Funding - Video - April 23rd, 2015
- Creative Lab Curaao over crowd funding actie Revive Gomezplein - Video - April 23rd, 2015
- My TubeStart update! - Video - April 23rd, 2015
- Alphaworks Equity Crowd Funding Platform Rebrands To Quire - Video - April 23rd, 2015
- Community Crowd Funding - Video - April 21st, 2015
- TOP Foundation Crowd Funding Video - Video - April 21st, 2015
- HIR 3 - crowd funding campaign on TravelStarter - Video - April 21st, 2015
- Get us to the World body painting festival - Video - April 21st, 2015
- BluSticks Crowd Funding Video (ENT 4113 - Group 6) - Video - April 21st, 2015
- Skin4Nino crowdfunding - Video - April 21st, 2015
- Sacred Foundations, Inc. Crowd Funding Video - Video - April 21st, 2015