Last month, UK-based West Berkshire Brewery addressed shareholders and new investors with a call for assistance, as the company found itself on the brink of closing due to the national quarantine. The brewery launched an online crowdfunding campaign to attract new investors.
As a result, over 1100 investors reacted to this call, with each of them pledging between 10 and 25 thousand pounds towards the company. Only a few weeks later, managing director Tom Lucas announced that they were able to raise 900 000 pounds from shareholders and an additional 450 000 pounds through the online crowdfunding campaign. These funds will allow the company to purchase packing equipment, keep hundreds of employees from losing their jobs and even acquire a new pub.
Investors who contributed their funds will receive discounts, guided tours and beer delivery subscriptions no matter how much money they pledged to the campaign.
According to Neil Cox, who invested over 200 pounds, supporting local businesses is essential during a pandemic. Crowdfunding platforms and investors can keep many companies afloat even when the crisis gets worse.
This large-scale crowdfunding campaign created a surge of interest towards the brewery, resulting in online sales increasing by a factor of 4. Oddly enough, the pandemic offered a catalyst for the company’s growth – in addition to developing online sales, the West Berkshire Brewery has started selling their beer in local supermarkets.