Records continue to fall in Australian crowd-sourced funding with Old Young's Gin Distillery making history as the largest ever alcohol-related CSF raise, and largest raise this financial year, funding at $2.7 million.
Old Young’s also become WA's biggest raise to date, and the fastest to hit its maximum funding target, with the deal opening on Tuesday afternoon and closing the following day, just 23 hours later.
Spirits were already high for the WA Distillery after winning two major awards at the International Icons of Gin in London just days before opening its crowd-sourced funding campaign.
Old Young’s took out the 'Craft producer of the year' and 'Brand innovator of the year', which added to a raft of other titles including Australian Champion Distiller 2017 & 2018 and WA Champion Distiller 2020 & 2022.
Founder James Young said the raise had multiple benefits for the business, which now finds itself on the world stage at the close of an historic equity crowdfunding raise.
“There’s the double benefit because the funds that come in help us grow to the next level, and we suddenly get 855 more brand ambassadors," he said.
"It gives us the financial security to do incredible things and take a quantum leap forward, including flexibility to explore UK and Europe."
Young said success came from listening to his advisors, including StartEngine Chair Ron Miller, who had insisted on the importance of engaging his audience, and Birchal, which had said the same.
"The last thing you want to do is talk to your 10,000-strong mailing list when you want money. I listened to you guys [at Birchal], as there’s a pretty good template. You’ve got to have an engaged community, and we kept building on that the whole way through.”
Investing in the team and spending time and budget wisely had also paid dividends.
“It’s a false economy not spend. We spent $30k on ads and the return on investment is obvious at $20 per EOI and an average investment of $4,000. You’ve also got to get your video right, your ads right, your PR right. The team we had was brilliant.”
Birchal Co-founder & CEO Matt Vitale said despite questions about market conditions, investors were still active and looking for good deals.
“We are so thrilled with the performance of Old Young's recent Birchl campaign. It's a great Aussie (and WA) success story, which we are privileged to have helped bring to market," he said.
"Campaigns hitting their maximum targets in hours have become increasingly common over the last few years. But with the recent uncertain macro conditions we wondered whether we would see any in 2023."
"Old Young's have shown that Australians are still enthusiastic about supporting entrepreneurialism, and getting involved as shareholders in great Australian early-stage businesses.”
"It's a massive and much-needed confidence boost to founders and investors all over Australia."
Young said it was unwise to take investors for granted in the current climate, with valuations and communication with potential backers remaining fundamental.
"You want your investors to become your advocates. If you show respect to investors, you set things up, not just for this raise, bur the next raise, and the next raise, and the next," said Young.
