Equity crowdfunding, which South African craft brewer Drifter Brewing Company used in 2018 to raise millions from over a hundred local investors, gives small businesses with genuine customer enthusiasm a real alternative to traditional bank finance or venture capital, letting fans become part-owners rather than just customers.
Why equity crowdfunding worked for a business like this
A craft brewer with an established, enthusiastic local following had exactly the kind of community-driven appeal that makes equity crowdfunding effective, since campaign backers weren’t cold outside investors but existing fans who already understood and believed in the brand. Reaching, and then exceeding, an initial funding target within hours to weeks, rather than months of pitching to traditional investors, reflects how much faster this route can move when a business already has real customer loyalty behind it.
What the funding was actually used for
Rather than general working capital, this campaign was tied to a specific, tangible growth investment, automated production equipment that would increase capacity and enable exports, giving investors a clear, concrete reason their money mattered beyond simply keeping the business afloat. Campaigns built around a specific capital expenditure with a clear growth story tend to perform better than vague “help us grow” pitches.
What other small businesses can learn from this funding route
Equity crowdfunding suits businesses with a genuine existing customer community and a specific, well-defined use for the capital more than it suits early-stage ideas without proven demand. Businesses considering this route should be prepared to communicate a clear growth plan and specific capital use, since backers are investing in a defined vision, not simply donating to a cause they like.
Frequently asked questions
What is equity crowdfunding?
A funding method where a business raises capital from many individual investors in exchange for equity, rather than relying on a bank loan or a small number of venture investors.
Why did equity crowdfunding work well for a craft beer business specifically?
It had an established, enthusiastic local customer base whose existing loyalty made them natural investors, not cold outside capital.
Does equity crowdfunding work better for a specific capital use than general funding?
Yes, campaigns tied to a clear, tangible investment, like new equipment, tend to perform better than vague general growth appeals.
What kind of business is best suited to equity crowdfunding?
One with a genuine, existing customer community and a well-defined use for the capital, rather than an early-stage idea without proven demand.
What should a business prepare before launching an equity crowdfunding campaign?
A clear, specific growth plan and capital use, since backers are investing in a defined vision rather than donating to a general cause.
Originally published in May 2018. Updated September 2026.
Small business funding context via the Department of Trade, Industry and Competition.
Originally published in May 2018. Updated September 2026 to add current guidance on South African crowdfunding platforms and campaign strategy, since equity crowdfunding has only grown as a funding route since Drifter’s 2018 raise.
