Recently, several plant-based companies have found huge success using crowdfunding as a platform to raise money directly from their customers. Crowdfunding enables companies to test the waters to see whether their ideas have merit without taking on large amounts of financial risk.
In June 2021, Spanish plant-based brand Heura Foods offered its community a chance to own equity in the company for as little as US$20 through a crowdfunding campaign hosted on Crowdcube. The company eventually raised almost US$4.8 million from more than 3,000 investors within 24 hours, surpassing its target of US$1.1 million.
Similarly, consumers put their money on UK-based Meatless Farm. Two thousand of them committed over US$2.7 million within the first 6 hours after the campaign went live. It smashed the initial target and is among the top 6% of largest fundraisers on Crowdcube.
Although it takes time to raise funds through crowdfunding campaigns, some founders find it easier to go to fans and customers than to pitch to institutional investors. We spoke with Jo Candy, Head of PR, Crowdcube. Candy posits, “Vegan businesses have big communities of people who believe in the plant-based revolution. Crowdfunding enables these businesses to turn their customers/communities into shareholders who want to back businesses they believe in and become a part of that revolution.”
An equity crowdfunding campaign allows small businesses to sell a portion of their business in exchange for much-needed capital. The share an investor receives is based on the size of their investment. Equity crowdfunding gives businesses a chance to potentially source cash from a large network, gain brand ambassadors, and increase visibility for their brand.
Photo: Heura Foods