Phat Brew Club has successfully raised $1,029,943 from 488 investors through an equity crowdfunding campaign on the OnMarket platform. This achievement underscores investor confidence in Phat Brew Club’s ambitious expansion plans. The funds will enable Phat to open their second venue in Hillarys. Since its founding in 2020, Phat Brew Club has experienced exponential growth over the past four years, which will now be supercharged with a $1 million capital injection.
Who is Phat Brew Club?
Phat Brew Club is located in the heart of Perth’s CBD (West Perth), just across from City West Train Station and one stop away from the city centre. At the core of its operation is a venue that blends high-end craft beer brewing with a large, family-friendly space, offering a unique Asian street food experience to cater to all tastes. With a team of highly experienced brewers, chefs, and venue managers, Phat Brew Club has quickly established itself as one of the top breweries in Western Australia.
Why Equity Crowdfunding?
"Our model has very much been built on the philosophy of being a Club that everyone can be a part of, we have run founders' programs and beer club programs which have brought more people in to be a part of PBC. These people have become our biggest supporters and are very much part of the Phat Family. To us, crowdfunding is an extension of this approach that we have taken for many years and one where we hope to bring in 100’s more people to our Family.” — Phat Brew Club Founders
What Made the Campaign Successful?
Investor Rewards
Phat Brew Club offered enticing rewards to investors, including merchandise, discounts, event invitations, products, and vouchers. This attracted local residents to invest.
Unique Points of Difference
The campaign highlighted Phat’s venues-first model, established market presence, award-winning excellence, expansion potential, cutting-edge creativity, and strong brand awareness. The craft beer market is saturated, and consumers know this. Phat Brew Club has clear points of difference and effectively showcased these in their investor video and offer document.
Entrenched in the Local Community
Phat Brew Club creates unique brews for sports clubs, allowing them to have their signature beer. This strategy has entrenched the brand within local communities, helping to support their equity crowdfunding campaign. Locals who could reap the benefits of investing already knew and trusted the brand.
Award-Winning Legitimacy
Winning awards added legitimacy to the brand, especially as a newer brewery. Phat Brew Club currently ranks in the Top 3 breweries in WA.
Future Growth Prospects
The funds will support the development of the new Hillarys venue, strengthening Phat’s presence in Perth’s northern suburbs, a region with limited brewery options. Investors had confidence in future growth prospects due to Phat Brew Club's exponential success in its first four years.
Equity crowdfunding is a great funding option for breweries, so how do you know it's right for you?
The majority of work we do at OnMarket is in the alcohol sector. It is the biggest sector in the equity crowdfunding market in Australia and globally. However, not all campaigns are successful.
Equity crowdfunding is best used as growth equity once you already have some traction. Pre-revenue breweries are rarely being funded.
You need to have compelling investor rewards; this can make or break your campaign.
You must have a database of customers, followers or supporters, this is who you will market the offer to. The bigger and more engaged your community, the less money you will spend on advertising.
Finally, you need to have a compelling story. People invest because they want to be part of your journey. This means you must have a crisp investor video and offer document that tells your story.
If you are a brewery with 500k - $25m in revenue, with a following and a compelling story, equity crowdfunding is right for you.
To learn more about equity crowdfunding contact Issac Newbold, at issac@onmarket.com.au.