Manchester’s Belle Isle Moonshine has turned to a crowdsourcing platform to complete a $3 million raise.
The craft distillery and canned cocktail maker began its current raise early this year, securing about $1.7 million before it became apparent in late spring the company would have a difficult time reaching its goal through traditional markets, according to Belle Isle co-founder and CEO Vince Riggi. The company raised $8.3 million in two previous rounds, according to Securities and Exchange Commission filings.
“We have raised capital on and off for the last 10 years, and the last 12 months have easily been hands down the toughest capital market we have ever experienced,” he said. “It’s not even close.”
Riggi and his co-founder and brother-in-law, Brian Marks, began talking about other ways to raise money. Belle Isle is seeking funding to expand its tasting room, grow direct-to-consumer sales and begin retail sales outside Virginia. Riggi said all of its funding so far has been through high-net-worth angel investors.
“We have been fortunate to meet some really awesome people in Virginia and outside Virginia that believe in what we believe in,” Riggi said.
But rather than high net-worth individuals or venture capital, crowdfunding is a vehicle for small investors to pledge capital and get a return on investment. The SEC code for securities-based crowdfunding has been around for about decade, and Riggi said it has improved dramatically.
“We were throwing stuff against the wall and thought, ‘Well, we have a ton of fans and a ton of people who would love to join this journey with us.’ We started to look at what was out there on the crowdfunding side that made sense for our funding needs,’” Riggi said.
Belle Isle launched its crowdfunding campaign in early August on the StartEngine platform. After two weeks, the company raised more than $365,000, and Riggi said it is ahead of schedule to raise the $1.3 million to close the round. The crowdsourcing fundraise is expected to last 60 days. The money raised through the platform will become a convertible note at 8% interest. The notes mature Dec. 30, 2027. A minimum investment of $250 is required.
Riggi said Belle Isle, which was founded 10 years ago, has grown nicely but is ready for a more aggressive approach to expansion. The company has 14 employees and has grown 70% since 2020, Riggi said. Belle Isle only sells through brick-and-mortar outlets in Virginia and plans to expand into retail sales in other states.
Right now, Belle Isle can ship directly across the country through its website. Riggi said the company is collecting data from online sales and is utilizing it to plan its expansion efforts. The company will look into selling through retail outlets in a particular state if data illustrates solid online sales.
“The online and retail sales really feed off each other,” Riggi. “Standard distribution is our marketing apparatus to get the consumer engaged with our brand. It creates awareness around our brand, not only in our current markets but other markets.”
Riggi cited tourists who visit Richmond and Virginia and try Belle Isle. These customers can purchase online when they return home.
