Crowdfunding is a great way for food and beverage brands to connect with their first customers, according to Pozible chief executive officer Alan Crabbe.
With equity crowdfunding on the horizon in Australia, he sees huge potential for farmers to build a loyal customer base for their produce by offering investors a stake in their business and then having them spread the word to their family and friends.
“Gen Y and Millennials care about sustainability and food sustainability and where their food comes from, more-so maybe than the previous generation,” he said.
At the Farming Together forum in Adelaide last week, Mr Crabbe used the successful example of Scottish brewer Brew Dog, which raised $500,000 from 1300 shareholders to get its start about eight years ago.
“As of two months ago the company has 46,000 shareholders and is valued at a billion pounds,” he said.
To succeed, Mr Crabbe encouraged farmers to engage with potential investors through social media, posting engaging videos and sharing their story on Instagram.
“Find ways to get a laugh or like so they will have an emotional reaction to what you are selling,” he said.
“Provide as much insight as you can about you as a farmer and as a brand.”
Crowdfunding started in the early 2000s with the music and film industry offering rewards to their fans in return for capital.
Since 2010, Pozible has hosted more than 13,000 projects and raised more than $57 million.