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
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