BrewDog extends £50m crowdfunding drive until October

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Punk IPA

Punk IPA is now the UK’s fourth biggest-selling ale brand

BrewDog is pushing on to crowdfund £50m in one year, after raising over £10m in three months but failing to hit its stretch target.

The brand has extended its fifth round of Equity For Punks crowdfunding drive until October this year, hitting its initial target of £10m ahead of time this weekend but falling short of the maximum £50m it had hoped to raise with the push.

The £10m already raised will go towards building a new brewhouse at BrewDog’s Ellon, Aberdeenshire site to meet growing UK volume demand, and the development of its sour beer facility, The Overworks.

Investors were “the lifeblood of our business”, said BrewDog co-founder James Watt. “The incredible groundswell of demand for this latest round of crowdfunding proves we’re not even close to slowing down any time soon.”

BrewDog has earmarked a number of potential projects for cash from the drive over 2018, including a major investment in its global expansion, particularly in Asia and Australia, and the creation of its own, £2m TV network dedicated to “craft in all walks of life”. It also plans to plough £3m into the opening of 15 more bars across the UK over the year.

BrewDog’s well-publicised crowdfunding campaigns have raised more than £52m so far, cementing its position as arguably the most successful crowdfunded company to date. The business was valued at £1bn last year, when its founders sold a 22% stake to US private equity group TSG Consumer Partners. BrewDog now values its business at £1.8bn.

Its fourth round of Equity For Punks crowdfunding, which ended in 2016, raised £19m, short of its £25m target.

The brand claims ‘Equity Punks’ who invested during the first round of crowdfunding in 2010 have seen the value of their investments rise by 2,765%. However, shares in the brewer are illiquid and can only be traded or sold once a year on BrewDog’s in-house trading platform.

It comes as BrewDog’s flagship brew, Punk IPA, is now the UK’s fourth bestselling ale, having more than doubled its sales, growing £15.6m to £31m [Nielsen 52 w/e 9 September 2017].