Marlborough's Renaissance Brewing has raised almost $400,000 through equity crowdfunding, just one week after going live.
The company offered 350,000 shares through equity crowdfunding platform The Snowball Effect last week, which aims to help New Zealand businesses by raising growth capital through sales of very small share lots to many people.
By last night, 188 people had invested $394,652 in Renaissance Brewing. Their target was $600,000 but they hoped to raise up to $700,000.
Renaissance Brewery development manager Roger Kerrison said they had raised almost two-thirds of their target.
"We've been averaging $42,000 a day in terms of investment.
"We've still got a long way to go but as long as we average $9000 a day we are pretty hopeful we will close out."
But at this rate, they would reach their target within a week, he said. The offer would officially close on September 12.
Most investors were from outside the Blenheim area - many from Auckland, Kerrison said. "We were a bit surprised about that to be honest, we thought there would be more investment from the Marlborough community."
Kerrison never expected the shares to sell so fast, he said.
"I keep refreshing the internet page. It's like watching the cricket scores on teletext - I'm refreshing it every two minutes."
Once the offer closed, Snowball Effect would "work out all the legal transfers", he said.
Renaissance Brewing would not pay dividends on the shares for the first three years, Kerrison said. "We are committed to invest profit into growth."
First on the list was definitely new, larger tanks, Kerrison said. Renaissance Brewing would buy two new 6000 litres tanks from China - their existing tanks were 2800 litres.
While a company could raise up to $2 million a year through the platform, Kerrison said they were not looking to hit that target.
Snowball Effect does not guarantee investors will be able to sell their shares, nor were they likely to be paid dividends in the early stages.
- The Marlborough Express
Is community service a worthwhile punishment for less serious criminal offending?Related story: (See story)