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New capital raising record

Investors pour £5m into BrewDog crowdfunding campaign

Brewdog dreamCraft brewer BrewDog has raised £5 million in the first 20 days of its record-breaking £25m crowdfunding scheme.

Achieving the milestone in three weeks breaks the previous record set by BrewDog in 2013, when it raised £4.25m (less costs) in just over six months.

The Ellon-based brewery’s target will smash the current crowdfunding record by more than five times.

A note of caution crept in today when one analyst questioned the value of making an investment in the company.

Emanuela Vartolomei, Founder and CEO of All Street said: “BrewDog has performed exceptionally well. 2014 was the company’s sixth consecutive year of growth, with annual turnover climbing 64% to £29.6m. It is a strong company with sustainability at its heart and a talented workforce.

“However, it is difficult to see how investors will make a financial return on this deal given the high valuation of £305m. No financial forecast has been disclosed so there is very little clarity as to how the company will hit the revenue targets required to generate a risk adjusted return for investors.

“That said, many participants in crowdfunding deals invest small amounts of money just to be part of the user journey of a new cutting edge brand.”

BrewDog has issued 526,316 shares in the brewery, for a minimum investment of just £95 for two shares. The capital raised from investors will be used in particular to fund an expansion of the BrewDog brewery and its international bar division, as well as launching new projects such as a craft beer hotel, custom sour beer facility and a distillation plant.

BrewDog plans to build a brewhouse to operate in tandem with its existing brewhouse which is a third the size of the new one.

It also intends to establish a small US-based brewing operation to quench what it believes will be a growing thirst for its beers in America.

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