Scotland’s largest independent brewer, BrewDog, has launched a new equity crowdfunding campaign, asking its fans in the United States to contribute $50 Million for its plan to enter the US market.
BrewDog confident it will beat its’ own set crowdfunding world record
BrewDog, which produces the UK wide popular Punk IPA, currently holds the world record in equity crowdfunding. In four UK ‘Equity for Punks’ campaigns it raised over £26 million ($35 Million). Its latest campaign missed its target of £25 million but, with a total of £19 million raised in just one year, the campaign broke further records, becoming the first crowdfunding scheme to raise over £5m in under three weeks.
The company is now attempting to break its own set records by raising $50 million (£38.29 million) from its US followers in only six months.
Investors can purchase as little as two shares at $47.50 each
On offer are 1,052,632 shares of Common Stock at $47.50 per share, with investors having to purchase as little as two shares. All investors will also benefit from lifelong discounts on Brew Dog Products as well as an invitation to the annual general meeting.
The US campaign will sell off a fifth of the new BrewDog USA Inc., which will be valued at $250 Million, to US investors. The rest remains owned by BrewDog and the 46,000 crowdfunding investors of previous UK campaigns meaning that UK backers will benefit greatly from the planned expansion into the vast US market.
“No other business worldwide, let alone a brewery, has acquired so many investors and capital in this fashion. This American equity crowdfunding round marks an unprecedented move by any small business, with BrewDog set to further pioneer its audacious new approach to community-fuelled business in the USA.”
Campaign is ambitious but founders are confident in success
The new campaign is of course very ambitious, especially considering that the Scottish brewery so far only has a very niche following in the United States.
However, its first US brewery it already announced to open in Columbus Ohio late this year and first brews are expected by November. The 100,000 square foot space will feature a restaurant, taproom, retail space, visitor centre and beer garden for all beer lovers.
Co-Founder James Watt stated that the companies approach is all about forming a community and connecting people who love beer:
“It is about taking beer lovers on this amazing journey with us. […] It is about working together to build something we can all be proud of. In 2010, we tore up convention, turned the traditional business model on its head and launched Equity for Punks, giving thousands of people a front row seat to the craft beer revolution in Europe. Now, we are coming to America. We are combining Europe’s leading brewer with the world’s biggest craft beer market. Expect fireworks.”
The new US operations will be the first separately managed expansion of the business. UK operations so far manage 44 bars worldwide in ten countries including its’ home country Scotland, Brazil and Tokyo.
So far BrewDog reported that the campaign has already gone beyond “more than $1 million in indication of interest in the first three days since going live on BankRoll”. More than 1200 individuals have registered their interest in investing in the US launch. While this is an encouraging start, the brewery has a long way to go to reach its target in only six months.
Katharina Fleiner 10/08/2016