Michael Brill doesn’t do things the expected way.
He started Crushpad in 2004 in his garage as a way to prove that ordinary folks can make their own special private label wines. It has blossomed into a successful business that combines wine-making passion and Web 2.0 techniques. Now he has raised a new round of $9 million — but not from venture capitalists. Instead, he raised it from 120 of his best customers.
“We had a venture deal with a better valuation,” he said. “But we’re a unique business. The customers have money. Originally, we were going to raise $5 million, then we raised it to $9 million and the deal was still oversubscribed. We figured this was better because these people are spreading our gospel.”
Just as Starbucks learned that coffee is an experience, so did Brill. Customers can learn about wine on Crushpad’s site, design their own wines to their tastes, come to Crushpad’s headquarters to sort grapes after harvest, and help make the wine which carries their own custom labels (see the one-of-a-kind bottles below). The company is one of the smartest new businesses that combines technology with the newfound love affair that the world has with wines, which are blossoming just like microbrewery beer.
Crushpad appeals to the upper crust of wine lovers who know a lot about wine and are itching for the chance to make their own. Since the users contribute their own efforts in the wine design, it’s like CafePress, the web site where you design your own T-Shirt, said Brill. The experience around harvest time, best described as crisis mode, is so fun that some customers come as part of their vacations.
“It’s built around the idea that anybody can make wine,” Brill said. “What we’re catering to is people who like the wine-making experience.” Read the rest of this entry »
