Ethique
Age of company:
7 years
Sector:
Natural beauty and household
Annual Revenue:
$1mil in FY2017
Campaign link:
Total Raised:
$700k*
Number of Investors
410
Country:
New Zealand
*Over 2 equity crowdfunding campaigns
Background
Brianne West started Sorbet in 2012 with the vision of creating the most sustainable cosmetics company in the world. From her kitchen in Christchurch, she created solid shampoos, conditioners, cleansers, and other cosmetic products through cruelty-free means, ethically sourced ingredients and compostable packaging. The support she received was overwhelming, and it inspired her to pursue Sorbetβs next stage of growth.
In 2015, Sorbet ran their first equity crowdfunding campaign. The funds raised went toward a complete rebranding of Sorbet to Ethique, and enabled the company to pursue global market expansion. The campaign was 24% funded on the first day and reached the maximum goal of $200,000 within two weeks.
In 2017, Ethique decided to seek investment again, this time sourcing 50% of the funds through crowdfunding and 50% through angel investors. The goal was further global expansion, more working capital, and further research and development of their products and processes.
“We want our crowd of customers owning a piece of us. To keep us to our values (and) to come along for our journey
”
Ethique Timeline
What worked well?
Supportive crowd - Ethique ensured they had a dedicated and engaged crowd before they launched their campaigns.
Good media coverage - Ethique hired a PR agency and had local media coverage for their launch. Later, they were featured in publications such as Forbes and Huffington Post, and got a shout-out on Social Media from celebrities who liked the products.
A well thought out launch plan - Both campaign launches were carefully crafted for their specific audiences (pledgers versus angel investors).
Listening to their crowd - One of the objectives of the first crowdfunding campaign was to deliver on their number one customer request at the time (a storage container for their Ethique products).
What could be improved?
Stressful final push - As the campaign was in final preparations for launch, there was a bit of stress.
Not aiming high enough - Based on the success of their first campaign, the significant media interest generated in between campaigns, and the overwhelming support of their customers and network, it could be argued that Ethique could have set a higher maximum target for their second campaign.
Conclusion
Ethique raised $700k and has 410 shareholders.
Going into both of her two equity crowdfunding campaigns, Brianne West was fully aware that she had a crowd of customers who were willing to back Ethiqueβs growth. She fostered her relationships with these supporters, built new ones by generating media interest, and tailoring her campaigns, pitch video, and launch events to them.
Ethique reached the maximum goals of both campaigns, raising a total of $700k to go towards their global expansion plan. Today Ethique is New Zealandβs highest rated B-Corp company and has forecasted $25mil of revenue for 2020.
Putting it into practice
Build anticipation before you launch - Start a newsletter for interested investors. Post about it on your socials. Set up a page on your website.
Get prepared - Make a plan. It doesnβt have to be day by day, but you should generally know who is doing what and when.
Pull your docs together - This can take longer than you think. Even with expert help, itβs still up to you to understand everything and commit to everything your offer document says. If itβs all done early, you can put it to your potential investors.
How can PledgeMe help?
If youβre considering an equity crowdfunding campaign, weβre ready to help. Contact us for a chat.
You can also learn more about creating crowdfunding campaigns in New Zealand or in Australia on our main website.
