From booze to funerals: here are the sectors cashing in on equity crowdfunding
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Beer, snack foods and finance disruptors are the key business sectors putting their hands out for equity crowdfunding this year.
Seven months on from the opening of equity crowdfunding campaigns for public unlisted companies in Australia dozens of businesses have put forward proposals or started campaigns to sell investors a piece of their business.
Stockhead has looked at 33 companies that have started, completed or advertised upcoming raises via the Equitise, On Market, Venture Crowd and Birchal crowdfunding platforms.
The companies fall into five categories: food, beverages including alcohol, beauty and homewares, e-sports and online services and financial services and real estate.
While the split is pretty even, the leader is clear: seven companies have so far entered the beverages space, including spirits maker West Winds Gin, which has raised $870,000 as it finishes up its run on Equitise.
Sugar-free soft drink brand Nexba raised $950,000 via a wholesale funding offer for its series A round.
In the financial services space, crowdfunding pioneer Xinja walked away with more than $2 million at the start of the year, while mortgage broker disruptor Joust is now sitting at the $240,000 mark of its On Market campaign.
From a quick scan of the campaigns so far on offer, it appears early stage consumer businesses are flocking to the format, including razor provider Oscar Razor, which has advertised itself as an upcoming proposition on the Birchal platform.
Undies subscription service Manrags has also thrown its hat into the ring with details yet to be announced for an upcoming raise.
Across all sectors, 17 of these campaigns come from startup hopefuls promising to disrupt their industries.
This ranges from soccer clothing social enterprise Park, which raised $316,000 earlier this month, to funeral disruptor, Picaluna, which promises more affordable and more meaningful memorial planning.
Picaluna opened expressions of interest on Birchal last week from investors who want to support a company “doing death differently” by connecting planners and celebrants with families online.
Here’s the sector breakdown:
Consumer goods: 5 campaigns
Beverages: 7 campaigns
Financial services and real estate: 6 campaigns
Esports and online services: 5 campaigns
Technology and infrastructure: 5 campaigns
Food: 5 campaigns