Threadheads ‘gets on the beers’ after crowd-funding record
Buoyed by its Dan Andrews’ ‘Get On The Beers’ T-shirts, Threadheads has broken equity crowd-funding records defying economic uncertainty.
Pop culture T-shirt maker Threadheads has broken equity crowfunding records on Monday, defying economic uncertainty to overtake cleaning products maker Zero Co with the highest number of expressions of interest in Australian crowd-funding history.
The Melbourne-based company, buoyed by its Dan Andrews’ ‘Get On The Beers’ T-shirts, has passed 6,300 expressions of interest for its crowfunding campaign that goes live on Tuesday. The company is raising $2m to expand into the US and open a third production facility.
Initially based out of a former massage parlour at Moorabbin train station in outer Melbourne, co-founders Marcus Siegel and Ace Reunis have racked up 240,000 customers in 40 countries, and have landed licensing deals with Warner Bros, Sony Pictures, Unilever, Activision and Sega.
“Wow … just wow. We cannot believe the amount of support we’ve received despite stock markets tanking, out of control inflation, and crypto crashing,” Mr Siegel said.
“Achieving the highest EOIs for equity crowd-funding in Australia has given us the proof that our little company is bringing a much-needed smile to people’s faces. And to think we are in the same leagues as such a worthy company like Zero Co, which went on to become the biggest and fastest raise in Australian history when it notched up $5 million in just over six hours.”
Mr Siegel said Threadheads is unique in the T-shirt making industry because it prints all its garments to order as they come in, using digital printing equipment in Melbourne and from its European arm in Prague.
“With ‘on-demand’ printing, there’s no massive investment in inventory, so we can offer a huge range of designs on heaps of different colours and products, while also eliminating any waste caused by overproduction,” he said.
Money from the Birchal raise will be used to expand to the US with the company’s third production centre, he said, with plans to move into anime, gaming, sports and music categories. Threadheads has also initiated discussions to have their products sold in retailers domestically and internationally.
“When you consider we are only raising $2m, and the average EOI is $1,200 – the share offer won’t last long when our campaign goes live on Tuesday at 11am,” Mr Siegel said.
“This initial offering will only be for people who have registered an EOI, so if you do want to invest, you have until Tuesday morning to register.”
Threadless co-founder Ace Reunis said the lipstick effect – in which consumers splurge on small luxuries to lift their spirits during hard economic times – is likely at play.
Recent research from Credit Suisse found that NFTs, fine wines and classic cars are driving a boom in alternative and so-called ‘passion’ investing, with investors diversifying their assets amid rising inflation, the global pandemic and war in Europe.
“I think Threadheads has been riding the same wave,” Mr Reunis said.
“People love wearing a graphic T-shirt that puts a smile on their face or reminds them of a nostalgic 80s or 90s moment when their life was a whole lot simpler. It resonates with both customers and investors, and it’s the reason why our brand has grown so rapidly since launch.”
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