Case Study: Eastern Market Brewing Company
Eastern Market Brewing Company was able to expand its operations, thanks to community investors on Mainvest.
Eastern Market describes itself as a community-focused craft brewery and taproom in the heart of Eastern Market, providing its visitors with a refreshing place to gather and drink beer.
The goal of EMBC is to revitalize the incredible tradition of brewing beer in Eastern Market, an area that dozens of breweries have called home over the past century. However, EMBC will leave its mark on Eastern Market, a commercial neighborhood in Detroit, by mixing tradition with experimentation. Whenever possible, beer will be brewed with local ingredients to support the market vendors and local businesses that have made Eastern Market what it is today.
Here's how Eastern Market Brewing Company used Mainvest to accomplish its goals and run a successful million-dollar campaign.
The Story of EMBC
The idea for EMBC came about as most great ideas do – on a porch, in lawn chairs, drinking beer. One of our founders, Dayne, had recently moved back to Michigan after living in England and bought a farm in the country. The three buddies who would eventually found EMBC were sitting on the back porch, discussing what they could possibly do with the beautifully finished barn that sat empty on his property. The idea? Start a brewery, of course! This microbrewery would be their side hustle. Something fun to do together.
The Business Model
Eastern Market Brewing grew from an idea to one of the most prominent locally-owned breweries in the region. Multiple tap rooms and brands exist under the EMBC umbrella: Lincoln Tap, Ferndale Project, Ashe Coffee, and Dooped Donuts.
Prior to EMBC's equity round, they ran a successful $250,000 revenue sharing campaign for Ferndale Project, one of their tap rooms focusing on more experimental beers. Many of those investors then re-invested returns in Eastern Market Brewing’s equity offering.
During the Campaign
Eastern Market pitched their campaign as an expansion their operations. Thanks to their consistent investor updates and community support, they were able to raise capital very smoothly. One of the challenges EMBC faced was ensuring that all of their supporters could invest- in fact, they needed to raise their maximum limit up to the upper threshold allowed by regulations. Mainvest’s best in class support and investor concierge team helped the EMBC team manage the influx of investor demand. Here are a few of the channels the team used to reach investors:
Direct pitching to friends, family, and regulars who were eager to invest first
Email campaigns to existing customers
Social media posts to spread the word
Digital advertising, supported by the Mainvest team
Press opportunities to expand reach
Print collateral in tap rooms to engage visitors
All in all, EMBC maxed out their campaign at $1.235 million.
The Results
Upon closing a successful round, EMBC was able to put funds to use right away. They've seen an extremely positive response from the community and note that investors have become the most loyal clientele. Using Mainvest's investor relations portal, keeping investors updated is simple.
EMBC had set its own terms and valuation, giving them full control over the fundraising process while the Mainvest team handled filings and facilitated the raise.
This also allowed existing investors who already participated in the revenue-sharing round to easily re-invest in the new round with a different structure.
From straightforward revenue-sharing deals to more complex equity, the Mainvest team is glad to work with independently owned brands at all stages and with a variety of fundraising needs
“Mainvest allowed us to convert the enthusiasm for our rapidly growing businesses into financial capital to fuel further growth. Our customers became our biggest fans, and because of the platform, they are now investors. Without Mainvest, there was no way we could efficiently connect with so many people so quickly, and communicate with them so effectively.”
-Dayne Bartscht, CEO
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