ParrotDog raises $1.2 million in 12 hours

Wellington-based craft brewers ParrotDog have raised $1.2 million from 420 investors in 12 hours – setting a PledgeMe record –  after launching their equity crowdfunding campaign yesterday.

ParrotDog is seeking up to $2 million, the maximum allowed from retail investors under equity crowdfunding laws, representing 16.8% of the company.

It intends to use the funds to move from its Vivian St brewery to a larger space in Lyall Bay within the next few months, which will let it triple production and operate an on-licence bar.

The five-year-old company made revenue of $1.85 million and a loss of $156,000 in 2016 and is forecasting revenue of $2.75 million and a loss of $172,000 in the current year (2017). It expects revenue of $5.5 million and its first profit of $100,000 in 2018, and revenue of $9.3 million and profit of $681,000 the year after. 

ParrotDog co-founder Matt Stevens says he is “blown away” by the early success and range of investors.

“A lot of people we’ve discussed the offer with are first-time investors and excited about becoming shareholders. I feel the introduction of crowdfunding is great for the New Zealand economy as a whole as it frees up the flow of capital from everyday kiwis to growing businesses.”

The campaign will run until early next month, with shares priced at $1 each with a minimum investment of $500. Those who invest over $35,000 will receive voting shares.

Post-funding, the three founders Mr Stevens, Matthew Kristofski and Matthew Warner will own a 26.34% stake each. 

ParrotDog is the largest funded campaign to run on PledgeMe – which recently missed forecasts in its annual results – and pushes it through the $10 million mark (including project crowdfunding) pledged through the platform.

The last successful equity campaign to run on PledgeMe was Ooooby, which raised about $280,000 in September.

Breweries are a popular choice for equity crowdfund investors – Yeastie Boys raised $500,000 at the start of last year on PledgeMe and Renaissance Brewing raised $700,000 in August 2014 using Snowball Effect. 

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