Cleveland Whiskey launches $1m crowdfunding bid

Ohio-based Cleveland Whiskey is seeking to raise US$1 million through a crowdfunding campaign for an expansion.

Cleveland Whiskey launched a crowdfunding campaign on WeFunder to raise US$1 million

The funding from the WeFunder campaign will allow the distillery to expand its production capacity and enter new markets.

The company launched the campaign following recent changes in US laws that for the first time permit startups to seek funding from average investors. Until now, companies could only raise funding from accredited investors, usually those with a net worth of at least US$1 million.

“This is a big deal to us, because it allows us to focus on small investors. These are our customers, people buying and enjoying our whiskey and it just makes sense to bring them on as owners of Cleveland Whiskey,” said Cleveland Whiskey CEO Tom Lix.

Cleveland Whiskey generated more than US$1 million in revenue last year and is “expected to reach profitability as part of a significant expansion both domestically and overseas”.

The Cleveland-based firm sells its products in 13 US states and six countries including Germany, France, Switzerland, Belgium and Japan.

The company uses proprietary technology to speed up the traditional ageing process. It has also created a series of “unique” finishes with woods not traditionally used for barrel production.

Lix added: “We’re not constrained by industry practice or tradition but rather we’re pushing the limits of natural aromas and flavours through some pretty innovative technology.”