Page 30 - BrewDog Case Study
P. 30
Crowdfunding
Other beers have customers but BrewDog has fans.
BrewDog tapped into its suppliers and customers to finance
its business. Where most entrepreneurs automatically
assume that they must pitch to traditional investors when
cash is tight, BrewDog turned that conventional wisdom on
its head, it pursued crowdfunding calling it Equity for Punks
(EFP) demonstrating that it is possible to use suppliers and
customers as a cash source to pay the company’s bills. (12)
For each EFP financing round the board looked at what sort
of funds they wanted to raise and how much equity they
were prepared to release as part of that fundraising.
They then set a share price they felt was reasonable for that
stage of the company’s development. (27)
Equity for Punks I (2009)
BrewDog in 2010 harnessed the enthusiasm of its fans into
this new EFP financing model based on raising capital
through crowdfunding. The company offered crowdfunding
shares with a total value of some £2 million, representing
8% of the capital of the company. The shares were sold at