BrewDog raises £0.5m in online share sale
The ‘Equity for Punks’ scheme attracted 1,000 buyers
Beer manufacturer BrewDog has raised £0.5m in funding by selling shares via a scheme on its website – exceeding its minimum target goal fourfold.
Under the initiative, the Aberdeen based microbrewery made 90,000 B shares available in £95 packages of four, and managed to raise the investment in just two days from 1,000 buyers. It plans to use the investment initially to finance new BrewDog bars, although the company added that further investment will enable it to build a new brewery.
Founded in 2007 by Growing Business Young Guns of 2009 James Watt and Martin Dickie, BrewDog has achieved rapid growth, with its turnover reaching £3.3m last year – up from £1.78m the year before. Brewdog said it is projecting turnover of £6.5m this financial year, adding that it also aims to list on AIM by 2016.
BrewDog launched its ‘Equity for Punks’ scheme in 2009 in a bid to “break from the mundane route of asking the banks and private equity for money”. This first round saw the company raise £750,000 over a five month period in what it describes as “Europe’s first online IPO”.
The new shares represent 8% of the business and are non-transferable, although BrewDog said that it plans to create a system to allow people to trade within the next two years.
On its website, BrewDog said: “We are releasing a second wave of B Shares, entitling shareholders to a lifetime discount in our bars and in our online shop, creative influence over what we reckon to be one of the world’s most forward-thinking breweries as well as an invitation to BrewDog’s soon-to-be legendary AGM.”
BrewDog now exports to 27 countries worldwide and its products are stocked in major retailers in the UK including as ASDA, Tesco and Selfridges.