In just over two months Scottish brewery BrewDog has raised £3 Million on Goal of £4 Million. Crowdfunding Round Closes in January.
Craft brewery BrewDog started in 2007 with just 2 employees and a dream. The firm was driven by two young fearless entrepreneurs determined to create a different type of company. A brewery that “shortens as much as possible” the distance between themselves and the people who love their beer. As the “Ultimate Incarnation” of their philosophy they created “Equity for Punks” – an opportunity for their fans and supporters to purchase shares in their brewery and aid in the growth.
Brewdog has crowdfunded equity several times in their brief history. This initial round of crowdfunding was announced in June 2013. In 2010 they crowdfunded an over subscribed issue and captured the interest of over 6000 investors. This equity crowdfunding offering is also a bit of a hybrid has it combines rewards with ownership. Share purchase allows the holder to benefit from a lifetime discount in all of the BrewDog bars of 5% and a 10% discount for their online shop. Not too bad if y0u love their product. There are additional perks available as well.
The Equity for Punks current offer is for 42,105 shares at a price of £95 per share. The shares are unlisted and do not presently trade on any exchange. BrewDog hosts the transactional portion of the offering on Computershare Limited which is authorised and and regulated by the FCA. This “third wave” of shares represents 3.6% ownership in the growing company. In 2012 they generated £10.5 Million in revenue with a net income of £486,000. They expect to generate £20 Million in revenue for 2013. With an average annual growth rate of 167% you can understand why people are interested in this craft brewery. It’s not just the great beer but the phenomenal growth.
BrewDog markets themselves as the fastest growing food and drink manufacturer in the UK in the past 3 years. The company has also opened 11 BrewDog bars scattered across the UK and one in Stockholm. They already have plans in place to go international. Openings are being planned in Brussels, Sao Paulo, Tokyo, and New Delhi in the next 12 months. No word on a possible opening in the United States.
BrewDog has charted a radical new way in raising capital. Crowdfunding platforms were just firing up in the United Kingdom when they decided to go on their own. An innovative business and effective management creates a compelling investment opportunity not just for wealthy 5%, but for anyone who wants to share in the benefits (and risk) of investing in a growth company. Crowdfunding is the democratization on investment opportunities.
“Here’s to the crazy ones. The Rebels. The troublemakers. The ones who see things differently. Because the people who are crazy enough to think they can change the world, are the ones that do.” (Steve Jobs).
Amen. And please let us know when you are opening your first United States based bar.
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