CRWD Network use case #2: Special Taste Brewery
By Karin Turki
July 11, 2018
CRWD Network
We are going to give you some use cases of the CRWD Network, so that you get a better understanding of its entire capability and its unique features:
- use case #1: a (fictional) SME in the B2B sector, which needs fundings for further growth and therefore runs a crowdinvesting campaign on different local platforms (in Germany) in the CRWD Network
- use case #2: a (fictional) SME selling consumer products, which needs fundings as well as promotion to enter new markets. Therefore the company runs an international crowdinvesting campaign on various platforms in the CRWD Network - to get the required equity plus the marketing effect which come along with the campaign.
CRWD Network use case #2: Special Taste Brewery
Company Profile:
• Category: Small/Medium Enterprise
• Year of Founding: 2008
• Revenue 2017: €20 Mio.
• Industry: FMCG
• Headquarters: Rosenheim, Germany
• Subsidiaries: Budvar, Czech Republic (production facilities)
• Total Employees: 28
Special Taste Brewery produces flavored craft beer for the retail and hospitality industry (hotels, restaurants and catering). Founded in 2008 as a small backyard brewery, the company was able to establish its own production facilities in the Czech Republic due to increasing demand of its niche products and consistently good sales.
Today, 10 years after entering the market, the company has the experience, team and knowledge to enter the European specialty beer market and needs €20 Mio. for enlarging production facilities, marketing, personal and market entry fees.
Step 1: Preparation
Special Taste Brewery approaches CONDA.de with its project to raise the necessary funding and expand into markets in Austria, Switzerland, Slovenia, Slovakia and Hungary.
CONDA.de sets-up a fundraising campaign with international focus, based on the CRWD Network protocol.
Special Taste Brewery creates tokenized security offerings (profit participation agreement) for a maximum of €20 Mio. by using the CRWD Network protocol.
Step 2: Placement in the CRWD Network
Because Special Taste Brewery wants to use the marketing effect of their fundraising campaign to enter new markets, the company approaches several crowdinvesting platforms in the CRWD Network where it can place its campaign. Five local platforms agree to the terms and conditions, and with one click, the fundraising campaign of Special Taste Brewery goes online on the same day.
All of the five platforms use the same standardized process for using smart contracts and offer the same company tokens to the public. Investors can get whitelisted on any of the platforms prior to making investments. 100% of the tokens represent the whole €20 Mio. tokenized security offering by Special Taste Brewery.
Step 3: Launch of International Fundraising Campaign
For the start of the campaign, the smart contracts are deployed on the Ethereum blockchain and are used by all platforms, which present the campaign to their existing networks and earn commission for brokering the project (everything is automatically done by the underlying smart contracts).
All investments are transparently settled on the blockchain. Users are able to invest in common cryptocurrencies as well as in Euros. As soon as an investor sends Ether to the crowdsale contract, it will receive the desired tokenized equity offering.
Step 4: Successful Funding and Thousands of New Brand Ambassadors
After its successful campaign, Special Taste Brewery pays dividends to all investors on the blockchain through a single “click”. Investors receive the security tokens in their wallets and get additional investor benefits such as craft beer coupons, invitations to music festivals sponsored by Special Taste Brewery, merchandise material etc. Such perks help turn Special Taste Brewery investors into enthusiastic brand ambassadors for the brand.
