Renaissance Brewing, a brewery based in New Zealand, was the first company to get equity crowdfunding for their company in New Zealand. Founded by Andy Deuchars and Brian Thiel in 2005, they engaged in equity crowdfunding in 2014 to raise a target of NZD$600,000 through Snowball Effect, a crowdfunding portal in New Zealand by offering 350,000 shares (Winter, 2014). However, they managed to exceed their own expectations and raised NZD$700,000 instead and gaining 300 new shareholders as well.
Renaissance Brewery were able to put together a successful campaign, enticing investors with special beer pricings and limited-edition ranges which investors found worthy to invest in despite their warnings of not expecting to pay dividends to their potential investors within the first three years, according to their then development manager Roger Kerrison (Winter, 2014).
Capitalizing on their existing customer base and a new bottling line, they were able to gain traction for their campaign easily, surpassing their target in a week and a half. Furthermore, most of their new investors were from Auckland, which is not where they are based. This was surprising yet encouraging for them, as it pointed to signs of a wider reach of customers.
They did hit a minor roadblock on their path towards acquisition. Their struggles to create a significant margin of sale resulted in a strain on their cash flow. As such, the company went into voluntary administration. However, eventually they were bought by Brandhouse for NZD$620,000, although it was not the value Renaissance Brewing was hoping for.
Without considering their recent struggles, they were a success for equity crowdfunding. They were the pioneers of equity crowdfunding in New Zealand and they had successfully raised the funds they were hoping to raise from equity crowdfunding.
Images Courtesy of:
Scoop.co.nz. (2018). Renaissance Brewing sold for $620k, leaving shortfall | Scoop News.
Winter, C. (2014). Brewer raises $400,000 by equity crowdfunding. [online] Stuff.
Pullar-Strecker, T. (2017). Renaissance Brewing, first NZ company to get equity crowdfunding, goes into administration. [online] Stuff.
Koehn, E. (2017). First business to use equity crowdfunding in New Zealand enters voluntary administration - SmartCompany. [online] SmartCompany.