A spate of growing Australian startups has turned to equity crowdfunding to build businesses and seize new opportunities, as founders seek backing from existing customers over outside investors.
Eco-friendly cleaning product brand Pleasant State is among the latest crop of startups to seek funding through Birchal, after having initially bootstrapped its enterprise through an Indiegogo campaign.
The award-winning company is seeking expressions of interest to help fund its next stage of growth, as it seeks new domestic retail partnerships and expansion into global markets.
Pleasant State has received 1,300 expressions of interest so far, said Sian Murray, the brand’s co-founder and creative director.
Taking this investment pathway suits Pleasant State, Murray said, as it allows access to consumers who are already engaged with the brand.
“We’ve always been really focused on remaining employee- and customer-owned to protect our values,” she told SmartCompany on Monday.
“Birchal gives us a really awesome opportunity to do this, and seeing the results from our customers throughout the first few weeks is very cool, because you see this support from everyone; that it’s actually possible to change the way business is done.”
The process is nevertheless labour-intensive and time-consuming, she added, advising other businesses interested in equity crowdfunding to be prepared to put in significant effort.
However, it might still suit businesses for whom the traditional VC pathway is not a natural fit, she said.
“We moved away from that path: instead of having a few people with a big impact who might not be aligned with what we’re looking for, this way, the majority of the people that are investing in the business are people that are already customers, already passionate about the environment, and are already passionate about working with us and supporting us,” she said.
Others include:
Seabin rose to prominence by offering rubbish-collecting bins for use in congested waterways. It has since pivoted to offer sustainability “impact data”, helping corporates clean up their act.
After raising $2.92 million from two prior Birchal campaigns in 2020 and 2021, the company says its hunt for $5 million will “scale up our revenue, our impact and build our nature repair digital platform to manage the data program.”
Nourish Foods (not to be confused with Nourish Ingredients) offers plant-based, health-conscious snacks for children.
Its most notable retail product to date is the Whole Kids line of organic foods, launched in 2005 by Monica and James Meldrum.
Having already secured distribution in major supermarkets nationwide, the brand hopes to develop new products, boost supply chain efficiency, and reach more customers at home and abroad.
One of the biggest winners in Australia’s non-alcoholic beverages boom, Naked Life is currently seeking expressions of interest in its new equity crowdfund raise.
The brand boasted $13 million in revenue last year, and hopes a new funding boost will enable it to “grow an unmistakable brand footprint here in Australia and drive true culture change as one in three people abstain from alcohol.”
Senior Business Journalist
Focused on the small business sector, David’s work covers the political, regulatory, and economic issues facing Australian entrepreneurs. Prior to joining SmartCompany, he was a reporter for Business Insider Australia. You can follow him on LinkedIn.
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