Public shows thirst for winery investment

Invivo Wines has become the latest producer to channel the power of crowdfunding, smashing a NZ$500,000 (£250,000) target within hours of making its equity offer.

InvivoThe New Zealand company, which is prepared to sell up to $2m-worth of equity, or a 20% stake, via crowdfunding platform Snowball Effect, plans to use the money to step up an expansion drive into in export markets.

With 24 days still to go, Invivo has currently attracted over $1.3m in investment – 265% over its original target ­– from 276 members of the public. It looks set to outstrip the current New Zealand crowdfunding record of $1.5m raised through the same platform for a company producing drones.

Having produced its first vintage in 2008, the business has been quick to adopt new ideas, launching a lower alcohol range in 2010 and a spritzer range in 2014. It already boasts UK chat show host Graham Norton as a shareholder, a relationship that has seen Invivo wines presented to celebrity guests including Gwyneth Paltrow and Will Smith.

Setting out their pitch to potential investors, founders Tim Lightbourne and Rob Cameron outlined their original mission to sell wine “in a way that would cut through the fluff that the traditional wine companies seem to love so much.”

Since 2011, the company has reported sales growth of 207% and currently derives 75% of its annual $5m turnover from exports. This latest initiative to accelerate growth became possible thanks to a relaxation of New Zealand securities legislation, which came into force last year.

Invivo is not the only wine business to have channelled the power of crowdfunding recently. Last year saw English wine, beer and cider producer Chapel Down smash its own target to give away 14% equity in exchange for £3.95m.

Another high profile offer came earlier this year from Burgundian producer Domaine Chanzy, whose private equity firm owner decided to use the Seedrs platform to conduct its Initial Public Offering (IPO). As an additional enticement, investors were offered discounts on the house’s wine.

 

Leave a Reply

Your email address will not be published. Required fields are marked *

Subscribe to our newsletters

Wine Trader

Vintage Capital II PLC
London, UK

International Marketing Assistant

iDealwine
Paris, France

Senior Partner Manager - Managed On-Trade

Maverick Drinks
United Kingdom

Logistics Administrator

Swig Wines Ltd
London

Customer Service Manager

Jascots Wine Merchants
London, UK

Transport Manager

Jascots Wine Merchants
London, UK

Head of Customer Services

Berkmann Wine Cellars
London, UK

International Logistics Manager

Wine Source
London, UK

PR Manager

Master of Malt
Tonbridge, UK

General Manager: Pilango Cider Vault

Pilango Cider
Fulham, London

International Bulk Wine & Spirits Show (IBWSS)

California,USA
25th Jul 2018

Cape Wine 2018

Cape Town,South Africa
12th Sep 2018

The Wine & Spirits Show

London,United Kingdom
12th Oct 2018
Click to view more

The Global Malbec Masters 2018

Deadline : 1st August 2018

Champagne Masters 2018

Deadline : 1st August 2018

Click to view more

The Global Malbec Masters 2017

the drinks business is proud to announce the inaugural Global Malbec Masters 2017

The Global Sparkling Masters 2017

the drinks business is thrilled to announce the launch of The Global Sparkling Masters.

Click to view more