BrewDog is a trailblazer in the investment crowdfunding space. In the UK, their Equity for Punks crowdfunding campaign has raised tens of millions of pounds in multiple iterations. Earlier this year, BrewDog closed a £10 million mini-bond offer on Crowdcube, once again proving its efficacy of raising money online. BrewDog now has over 46,000 shareholders who ultimately end up being brand ambassadors as well as customers. BrewDog’s capital raising strategies always included colorful promotions and unique guerrilla marketing tactics. In the spring of 2016, BrewDog announced it was crossing the Atlantic and setting up shop in Columbus, Ohio. Along with the establishment of a beachhead in America, BrewDog was intent on crowdfunding in the US using new rules established by the JOBS Act called Reg A+. Of course, each investor receives associated perks based on the level of ownership. The offer is listed on BankRoll with additional information on the BrewDog website.
So in the 12 months or so, since the Equity for Punks USA offer was listed, how are things going?
We reached out to BrewDog Task Force; Commander in Chief, Sara Warman, and she reported that over $5.5 million has been committed from over 5,000 individual investors. Under Reg A+, issuers may raise up to $50 million and the offer is far below the max amount but five million is no small amount. The Offering Circular itemizes all of the details as to how the money will be used for the USA expansion.
The offer has been extended several times and BrewDog now expects the deal to close by the end of July. A quick trip to their status page indicates a majority of the states have individuals that have invested. At the top of the list, Ohio is leading the way with more than 500 investors, something that should come as no surprise. Two communities, Canal Winchester (where the brewery is actually located) and Columbus are number one and two for Equity Punks. BrewDog has offered to open a Brewpub for any US city that has 500+ BrewDog shareholders.
Now BrewDog USA is a separate company than BrewDog plc in the UK. But BrewDog plc received a sizable investment of £100 million at a billion pound valuation. Hopefully, BrewDog USA experiences a similar growth for the new owners.
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