Investing in a Relationship – There’s more than the money

June 5, 2018Speaker Sessions 2018

One of the big questions smaller businesses (including Breweries) are facing is “How do I finance this thing I’m/We’re planning/building/growing/installing?.” Like the majority of smaller businesses, traditional lending institutions are less likely to lend without some form of security, which smaller businesses are less likely to have, making the likelihood of obtaining these funds……less likely.

Enter two alternative funding sources.

An equity crowd funding organisation (PledgeMe.co.nz – they actually crowd funded themselves twice) has recently helped 3 New Zealand breweries in addition to many other businesses in Parrotdog Brewing Ltd (twice), Eagle Brewing Ltd, and Yeastie Boys, and their respective endeavours towards greatness.

Another option is through Growth Capital investment from a company like Blue Sky Alternative Investment. Blue Sky Alternative completed a raise of $6.35 million to buy an 11.95% share of US Based Lord Hobo Brewing Co at the end of 2017. Since then, this round of funding has facilitated expansion as well as the combined commercialisation expertise, has exceeded forecasts and expectations.

Both of these types of engagement have pro’s and con’s which we look to flesh out for all to see. It’s not only the funding that these new relationships bring to the organisation, it’s the intangibles which is where the benefit quite often realised.

**Please note there is no audio for this session**