BrewDog targets £25m crowdfund target in UK’s biggest ever drive

Crowdfunding pioneer and Scotland’s largest independent brewer, Brewdog, has announced that it has embarked on the largest ever equity crowdfunding drive attempted in the UK in a bid to raise £25 million.

Their Equity for Punks pitch is the 4th time the Aberdeenshire-based craft beer maker has gone to its fans and supporters to raise funding.

Its last funding round closed in December of 2013 when Equity for Punks raised £4.25 million from “fanvestors”.

According to information provided by the company, BrewDog will sell 526,316 shares with a minimum purchase of £95 for 2 shares.

If fully subscribed by the closing date in April of next year, so-called “Equity Punks” will own 23 per cent of the business, up from 15 per cent currently.

“Because it is a much bigger share offering than we have done before, we have given ourselves a much bigger window,” said co-founder Martin Dickie.

“But we have reached our targets ahead of time before, so we would hope to do that again,” he added.

Those who invest will be incentivised to solicit friends to participate as well.

The funding will be used for global expansion as well as launching new projects like a craft beer hotel in its home town of Ellon, a custom sour beer facility and distillation plant.

The Ellon-based firm aims to double its current 28-strong chain of pubs within three years if its latest round of fundraising is successful.

In 2014 BrewDog opened 12 new branded bars taking the global number to 26.

Six of those pubs were in the UK but the other half established beachheads in Tokyo, São Paolo, Gothenburg, Florence, Bologna and Helsinki.

In 2015 BrewDog has opened up bars in Barcelona and plans to open up establishments in Brighton, Norwich, Leicester, Berlin and Rome.

Plans for a second Glasgow pub – in the Merchant City – are already in the pipeline, with other sites targeted in locations such as Berlin, Brighton and Norwich.

The company has also formed a strategic partnership with US based Stone Brewing for import and distribution.

James Watt, said: “We already have 14,568 passionate shareholders and with this new round we invite tens of thousands more to join the craft beer revolution and help us change the world forever.

“We are redefining the relationship between brands and their customers, redressing the balance between passion and profit and bringing the power back to the people.”

Earlier this month BrewDog announced the 6th year of “record growth” for the business that began in the back of a van with two men (and a dog) in 2007.

Revenue increased year over year in 2014 to £29.6 million from £18 million in 2013.

Profit topped £4.9 million in contrast to the £2.9 year prior.

Mr Watt added: “Our growth has shown that with a healthy disregard for the impossible you can achieve anything. When we launched in 2007, we never expected to be where we are today, but our success continues to prove that there is an insatiable thirst for great craft beer, and a huge opportunity for businesses doing things differently to thrive in challenging economic times.”