Crowdfunding: Cider Company Hits Target
Crafty Nectar, a Dorset company that has made a subscription service delivering cider from independent makers to consumers’ entryways, is set to establish another wholesale venture after hitting its crowdfunding funding target on Crowdcube.
The company launched its campaign on the crowdfunding platform with a goal of £100,000, offering 16.54% equity stake to investors. It has already surpassed the initial goal with about £120,000 so far pledged from over 200 shareholders.
Crafty Nectar was founded by chief executive Ed Calvert and chief technology officer/chief marketing officer James Waddington.
Calvert told Insider:
“I went to a rugby match with James; we had a few ciders and were discussing the rise of beer clubs. We realisedthat there was nobody doing them for ciders. James bought the Crafty Nectar domain and it’s all spiraled from there.
“We’ve managed to do it all on a shoestring basis so far. I was working full time in London and James has his own business.
“We’ve discovered a lot along the way. People tend to tarnish all cider with the same brush. It’s not all farmhouse cider.
“It is a more scientific process than beer, it’s more like wine. Counties all make it differently as well. There’s a huge amount of variety out there.”
Crafty Nectar is predicting £85,777 income for 2017 which will be until November, ascending to £376,984 the next year.
The Crowdcube financing will enable the company to stretch out into the wholesale market for its juices.
Calvert said that as they began going to trade shows, they were approached by pub landlords asking them about wholesaling juices.
“We devised a plan to try and change the landscape for the wholesale of cider. It allows pubs to get relatively small amounts of cider but a wider variety. The Crowdcube investment is about developing that platform,” Calvert added.
He also said that they have settled on the choice to develop the subscription component more gradually. On that regard, money will be needed as well.
The business had predominately been subsidised by the originators and the new investment will finance the inauguration of the wholesale operation. Calvert and the rest of the team used the money given by a family friend, and that allowed them to focus on the campaign.
“I would say venture capital (VC) investors are much harder to find. Because we didn’t have everything aligned that they want it made it difficult for us to go down that route. (Crowdfunding alternative was the path to our success here) Crowdcude came to our rescue.”