LegalZoom Blog

Legal news and small business tips.

Crowdfunding Your Beer

no comments yet


Pyzata/Shutterstock.com

Pyzata/Shutterstock.com

It’s no secret that people like beer. Apparently sour beers are becoming a big thing now too. Some are tart like a raspberry or strawberry, and others are dry like Champagne.

The creativity of American craft breweries is fueling these new tastes. Craft brews are not only for drinking either. Some home cooks are even using their favorite beers as an ingredient in desserts and  main course recipes.

Craft breweries are enjoying their time in the spotlight and now even have their own way of raising funds. Many of us became familiar with the idea of crowdfunding through the popularity of Kickstarter campaigns. But now, there are opportunities to fund much more niche markets and add equity to the mix.

CraftFund sponsored this year’s Great American Beer Festival and is on a mission to help unite the craft beer community, grow the craft market and improve local breweries. Their website explains how things are changing.

“Craft breweries are disrupting the beer industry by focusing on variety and smaller batches. A movement that started innocuously has now seized 10% of the total beer sales. It is expected to be a $17 billion industry by 2017.”

“State and federal regulations are changing such that small businesses will soon have access to a much greater pool of capital through the sale of equity online. The potential to source smaller investment amounts from a much larger pool of investors will disrupt and democratize the traditional finance model.”

A British company called BrewDog has successfully funded 12 pubs across the U.K. through online crowdfunding using an equity model. “They proved to the world that … you don’t need to go to VCs and give away half your company,” Benoit, the founder of CrowdBrewed, remarks. “You can do it through crowdfunding.”

Since Americans’ taste for craft beer does not seem to be waning, it’s likely that more people may decide to turn their own small home breweries into small businesses. After all, even the White House has its own home brew. It doesn’t get much more American than that.

ShareShare on FacebookTweet about this on TwitterShare on Google+Share on LinkedInEmail this to someone

Sign up for the LegalZoom newsletter!

Written by

October 31st, 2013 at 9:24 am