Less than two weeks after launching its equity crowdfunding campaign on Crowdcube, Derby Brewing Co. has officially increased its equity offering from 3.86% to 6.5% through the funding round and decreased its initial valuation from £12,459,364 to £7,192,307.60.
As previously reported, Derby Brewing Co. was founded in 2004 and is headed by Trevor Harris, who began his brewing career more than 25 years ago. The brewery claimed that it has grown nearly 3500% in the last decade, has sold nearly 450,000 beverages, had a turnover in excess of £3 million in 2016, and grown into the double digitals every year with an average growth of 75% year on year. It is now seeking £500,000 through the equity crowdfunding initiative. Since its launch, the campaign has successfully secured £173,400 from more than 220 investors. Director of Derby Brewing Co., Paul Harris, revealed in a statement:
“Following feedback from potential investors, consultation with Crowdcube, industry peers and discussing this together as a family, we have taken the steps to alter the level of equity on offer of the company to potential investors and as such the value of the company. As a business the objective of this crowd funding round is to achieve funding to enable us to scale the business and take advantage of the huge opportunity in the real ale, craft beer and the quality venues market. As such it is important for us to offer potential investors great value as we grow together, and we do not want the potential valuation or equity on offer to be a barrier to investment and people joining #TeamDBC. As such we have discussed the level of equity we are happy to release for the £500,000 target, following the outlined feedback. We have all agreed to increase the equity on offer from the outlined 3.86% to 6.5% of the business, and as a result the business will subsequently be valued at £7,192,307.60 from the previous £12,459,364 valuation. We have already received over £125,000 and all current investors will receive the proportionate increase in their share of the business for no further investment.
As part of the initiative, Harris stated he and his team have added a new reward level for investors that are looking to invest £500:
“In addition, we have added a new reward level for those people looking to investing £500. As well as the rewards from investing £100, we’re also offering a tutored beer tasting event with our award winning brewers and an annual six pack of your choice of Derby Brewing Co beer collectable from our brewery or one of our venues. This will also mean that anyone investing £1,000 and above will benefit from the tutored beer tasting event as well. We believe this offers potential investors even greater value for their investment and further strengthens the opportunity, as based on forecasts we will look to double the value of shareholders shares within three years, with all shareholders being eligible for dividends and rewards depending on their level of investment along the way.”
He then added:
“As a small family business we wanted to be sure that all our investors are excited to be part of #TeamDBC and feel invested in our exciting plans for the future. We have taken this bold step as on reflection and as a family the important driving factor in our crowd funding is to create a positive and passionate crowd who are excited about our next chapter as a business and not to create any unnecessary barriers. We feel the new valuation strikes the right balance and hope that potential investors will see that as a small family business we take on board feedback and look forward to a long and successful partnership with all our current and future investors.”
Derby Brewing Co.’s campaign is set to close mid-May.
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