Crowd funding is a useful way for small businesses to raise a bit of extra cash. In the wine trade the money might be channeled into a new sampling device, or perhaps a second branch. Those who make donations get a nice thank-you and an invitation to the launch party, but often not much more.
Taurus Wines in Surrey has gone a step further, raising £275,000 via Crowdcube to finance a move to larger premises and to open a second branch. The benefactors in this case have become shareholders in the business, with a combined stake of 10%. In time they will probably receive an annual dividend of 6% and even be able to trade their shares.
It’s an interesting business model and one that could work for dozens of independents who are looking at expansion plans. Read all about the Taurus experience in the July edition of The Wine Merchant.