Scottish brewer and bar operator BrewDog has launched an attempt to raise £4million by selling shares directly to beer drinkers through crowd-funding.
With the Equity for Punks scheme, the company has made 42,000 shares available to anyone, at £95 each. It previously raised £2.3million through Equity for Punks in 2011.
It sold over 10,500 shares in the first 24 hours of the scheme, raising £1million.
The company plans to raise funds for an expansion of its brewery, its expanding bar division and a new series of bottle shops across the UK.
The scheme, accredited by the Financial Services Authority, allows anyone to buy shares in the business online.
As well as owning part of the BrewDog business, Equity for Punks shareholders are given a lifetime discount of five per cent at BrewDog’s growing portfolio of craft beer bars and a discount of up to 20 per cent – depending on how much they invest – at BrewDog’s online shop at BrewDog.com.
The company has achieved an average annual growth of 167 per cent over the past five years and is has been assessed at over three times the value it was given during the last scheme in 2011. Now employing 187 people, BrewDog is on track to turnover £20m in 2013.
BrewDog has opened 12 bars since 2010, largely funded by the previous Equity for Punks investment, including its first overseas location in Stockholm, Sweden. Its beers include Punk IPA, 5am Saint, Dead Pony Club and Dogma.
In response to its significant growth, Keith Greggor and Tony Foglio – the team behind Skyy Vodka – invested in BrewDog in 2009.
Equity for Punks members will also be invited to attend the company’s annual general meeting – the latest of which takes place on Saturday June 22, including punk rock bands and beer tastings.
James Watt, who co-founded BrewDog with Martin Dickie in 2007, said: “With the help of almost 7,000 punk investors, BrewDog has become the fastest-growing food and drink company in the UK. As we need funds for more growth plans, we never considered a bank or an investment group – it’s another opportunity for our customers to benefit from our growth directly.
“This is the world’s biggest independent crowd-funding initiative. It proves that there is a viable alternative to the financial establishment, and as the self-interested banks continue to stunt economic growth, people are looking for better places to put their money.
“With Equity for Punks, beer fans are able to become part of a revolution – not just redefining beer in the UK, but shifting the balance of power away from the banks and back into the hands of the people.
“We want people to be as passionate about beer as we are – that is the foundation on which Equity for Punks is built. Not only are we creating a community of people that will profit from our growth, we are building an army of craft beer advocates shunning the status quo of fizzy, mass-produced, tasteless lagers and embracing quality, artisanal beers.”
Shares are available to buy at www.brewdog.com/equityforpunks. The closing date for the Offer is 22 January 2014.
