Angels Den is raising capital for a new niche crowdfunding site, WhiskyInvestDirect. The live investment offer for the new funding portal wants to capitalize on a consumable that has seen an average annual return of 5% since 1980. WhiskyInvestDirect was founded by Paul Tustain and Rupert Patrick. Tustain is the CEO and Founder of Bullion Vault. Patrick, who manages the Whisky crowdfunding site, was previously Commercial Director at the global firm of Diageo. WhiskyInvestDirect will leverage BullionVault’s model of crowdfunding wholesale bullion bars and apply it to maturing whisky.
The offer is in “over-funding” mode having topped £1 million. The maximum equity that can be raised has been set at £2 million.
The site, which is not yet live, is described as introducing private capital into a very capital intensive industry. WhiskyInvestDirect hopes to become a new digital method for the Scotch industry to trade and manage maturing whisky. The founders also intend on developing their own brands, marketed and sold by a subsidiary of James Eadie.
According to the offer page, demand for whisky is growing but requires, on average, 10 years of ageing in oak casks. This has created a big working capital problem in the industry, which always risks having its mid to long term upside capped by current financial constraints. Many brands are already supply constrained. The new funding portal intends on making maturing whisky investable by private individuals by introducing crowdfunding of barrel whisky.
Patrick has accumulated 24 years in the whisky business at Diageo so he certainly has the experience and knowhow to operate a whisky platform. Scotch is said to be a £4.3 billion market and the outlook remains positive. But the challenge for every brand owner is to make accurate ten year forecasts and then lay down sufficient stocks to meet that future demand.
The WhiskyInvestDirect offer is open until the end of May with the aim of achieving its maximum target of £2m. If it attains this level of investment it will become the largest deal in Angel Den’s history.
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