Ask the Collective
The questions independent drinks founders ask most — answered. Distilled from years of community knowledge so the good stuff never disappears in the feed again.
What is the best route for first-time fundraising in the drinks industry: crowdfunding platforms, angel investors, or other structured equity?
For a first fundraise (typically £300k), **angel investors from your network are the strongest option**, particularly if you can offer EIS/SEIS tax relief, which is attractive to high-net-worth individuals given the sector's risk profile. **Key tactics members recommend:** - **Start with low-hanging fruit** — identify super-fans of your product, stockists where your products perform well, and their owners/directors (Companies House is a goldmine for finding directors and shareholders). These warm relationships convert far better than cold outreach. - **Leverage your network for warm introductions** — ask people in your existing network if they can introduce you to potential investors with mutual connections. Never discount anyone; some biggest investors have been unexpected. - **Build momentum with early commitments** — getting your first few backers is psychologically and practically crucial; each commitment builds confidence for the next. - **Crowdfunding platforms (Crowdcube, Seedrs) are premature at this stage** — they work better in later rounds (2nd, 3rd, 4th) when you have significant traction and retailer distribution. Crowdfunding typically tops up a round rather than filling it; members report 80%+ is usually pledged off-platform already. - **Apply the relationship filter** — only take investment from people you'd have a drink with and could maintain a relationship with if things don't work out. Avoid problematic friends or family dynamics. **Expect rejection:** You'll get many no-replies and outright nos, but persistence pays. Ask for introductions even when someone can't invest themselves—they may have valuable connections in their network.
What share classes should founders offer to first-round investors?
Members typically recommend issuing **Ordinary B shares** to first-round investors, rather than standard Ordinary shares, particularly when you want to retain control and differentiate investor rights from founder shares. **Key structure recommendations:** - **Ordinary B shares** — the standard approach for first-round investors; provides flexibility on voting rights depending on investment size and negotiation - **Founder shares with double voting rights** — give yourself enhanced voting control even if investors hold a significant equity stake; multiple members endorsed this approach to maintain decision-making authority **Consideration:** The choice between voting and non-voting B shares depends on how much the investor is committing and your preference for governance control. Members did not elaborate extensively on non-voting structures, suggesting voting rights are the norm in early rounds.