Page 30 - BrewDog Case Study

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