Back in December, Michigan joined the host of states that have preempted the completion of the JOBS act by passing their own intrastate equity crowdfunding exemption, allowing non-accredited investors to invest in startups within state lines. Five months later, Tecumseh Brewing Company has become the first organization to make use of the new legislation.
Tecumseh is far from the first microbrewer to recognize the potential in crowdfunding. Scotland’s BrewDog pioneered the market back in 2009 when they brought over 1,300 investors onboard through their Equity for Punks campaign. Now – five years and two more equity campaigns later – BrewDog has opened 13 brew-pubs and is Scotland’s largest independently owned brewery.
Craft brewing – with its focus on high-quality, innovative products – has shown to be a perfect fit for the crowdfunding model.
“Crowdfunding is a great way to democratize your company and it fits well to the craft beer ideology,” Pyry Hurula, CEO of Sori Brewing told Drinks Business Review. “Financing is not only for the business sharks and banks anymore.”
Microbrewing remains one of the U.S.’s fastest-growing industry segments, with $14.3 billion in sales in 2013 and over 400 breweries opening each year around the country, according to the Brewer’s Association. As that trend continues, entrepreneurs are increasingly turning to crowdfunding to help make the brew of their dreams a reality.
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