Milestone for funding platform
Brewdog joins Crowdcube to meet fund target
The company’s decision marks a softening in the company’s attitude to more established forms of fund-raising.
Crowdcube has become the first investment crowdfunding platform to raise £100 million and has now helped 290 businesses secure investment from the public.
It has emerged that after raising an initial £5 million of its £25m target through its own sale of shares, Brewdog has managed just £1m a month and is now seeking other ways to meet its target.
Luke Lang, co-founder of Crowdcube said: “This is the first time that a combined equity and bond crowdfunding raise has been launched.”
Julia Groves, chief executive of The UK Crowdfunding Association, reckons investors are more confident when they have a regulated platform overseeing the crowdfunding process.
“We are glad to see Brewdog choose to partner with a regulated crowdfunding platform on their ambitious raise,” she said.
Innis & Gunn, the Edinburgh craft brewer, has raised £3m towards building a brewery in the Edinburgh area. Its mini-bond closed on 16 July.
Crowdcube has helped 109 businesses, including 14 overseas companies, who have raised £50m collectively in 2015 alone, with the platform amassing a dominant 52% market share in the UK, according to data released by Crowdsurfer in August.
It launched in Scotland last autumn and has raised more than £1.5m for businesses north of the Border.
The biggest deal to date saw Flavourly, the craft beer and gourmet food service founded by Scots entrepreneur Ryan O’Rorke, raise £515,000 after the business turned down £75,000 of investment on BBC’s Dragons’ Den programme.
Other Scots businesses to raise finance on Crowdcube include SuperJam, Growler Beers and Plan Bee, which specialises in the management of beehives.
Crowdcube also sealed its position as the largest and most active investment platform in Europe as it nears 200,000 registered investors, with more than 70,000 people signing up to the award-winning site this year.
Investors through Crowdcube have received financial returns in excess of £600,000 so far in 2015, following the equity sale of E-Car Club to Europcar in July and multiple mini-bonds. Eden Project and River Cottage have made their first interest payments to investors.
Award-winning invoicing app for trade professionals, Powered Now, which is currently overfunding after passing its initial £350,000 target was the business that took Crowdcube through the £100m milestone.
The last 12 months has seen a growing trend toward more established and VC-backed businesses using Crowdcube to raise finance with a dozen companies raising over £1m.
Businesses raising over £1m include:
- JustPark’s pioneering parking app backed by Index Ventures and BMW i Ventures raised £3.7 million in March 2015.
- Award-winning Camden Town Brewery raised £2.4 million to help fund building a new brewery in London.
- Sugru got stuck in by raising £3.4 million to expand markets globally for its mouldable adhesive and attracted an investment of £1 million, the largest single investment to date from an existing member of the crowd.
- Former top executives from Zoopla, eBay and Gumtree raised £2 million for Adzuna, the VC-backed job site listed as one of London’s top 10 hottest start-ups.
- The world-renowned Eden Project secured £1.5 million in just 20 hours to build new educational facilities.
- easyProperty, the most recent addition to Sir Stelios’ easyGroup secured £1.4 million seed capital in 2014.
Crowdcube also celebrated its largest single private investment of £1m in July, which was invested in Sugru.