2 builders who never spoke to each other

Sell a stake to the people who use it

Customers holding equity promote the company in a way the money itself never buys, and rule changes have made raising from your own users and partners practical at meaningful size. An investor who uses the product stops churning, and a partner who owns a slice pushes the co-marketing.

The method

1. 01

   Raise from your own customers and partners through equity crowdfunding, because an investor who uses your product stops churning and a partner who owns a slice pushes co-marketing.

2. 02

   Sell a stake to the people who drink or use the product. Customers who own a piece of the company promote it, which is worth more than the money.

What it returned

• $5M

  He points at Gumroad and Customer.io as the rounds to study, notes rule changes now allow up to $5M on platforms like WeFunder and Republic, and that the founder sets the valuation.

• £350,000

  BrewDog was cut from the programme by producers who thought it lacked growth potential, then crowdfunded by letting its own drinkers take a small stake plus other benefits, and became one of the best selling craft beers in the world. Oppo Ice Cream, also rejected, raised £350,000 from backers including Andy Murray and Richard Branson and now sells in over 1,300 UK stores including Tesco, Ocado, Sainsburys and Waitrose.

Sources

• SaaS Funding 101 | Corey HainesCorey Haines · corey.co · Not VC · 2021-08-04
• The 13 Biggest Dragons’ Den Failures That Made MillionsFailory · failory.com · 4) BrewDog · undated