Crowdfunding fails to raise cash for food franchise

Managing director James Tucker said the funds would have let Mad Group open another six to eight Mad Mex stores, to add to the six stores it has already, and achieve "critical mass".

Tucker said he remained "100 per cent confident" Mad Group would raise the funds it needed to grow Mad Mex.

It would now approach the 98 investors who had applied for shares to see if they were still keen to subscribe for them in a private offer, he said.

Discussions were also planned with other potential investors who had come forward as a result of the campaign and who had expressed interest in separately investing sums between $150,000 and $1.5 million, he said.

Mad Group's bank had offered further support to expand the enterprise, which meant it would only need about $500,000 to see through its original expansion plan, he said.

"There are a lot of wheels in motion that couldn't start until the offer closed on Friday, so now this week we are full steam into working through these other options."

Tucker believed New Zealand could support 30 to 50 Mad Mex stores in the "medium term" and said he was not sure why the equity crowdfunding campaign had fallen short.