Why Crowdcube’s Punk Unicorn, BrewDog, Took Crowdfunding to the Next Level

BrewDog, which is one of the UK’s fastest growing food and drink brands, has raised a total of £13.13 million on Crowdcube via both equity and bonds, Crowdcube’s blog disclosed.

In particular, according to one of the leading equity crowdfunding platforms,

its latest round on the platform saw over 2,700 people invest  £10 million in just three weeks, adding to the company’s investor community of more than 55,000 people (including 46,000 Equity Punk investors from across the globe). This £213 million investment will see £100 million being invested into the business to fund its growth, with a further £100 million being paid to co-founders James Watt and Martin Dickie and £13 million will go to buy-back shares from early crowdfunding investors.

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The company, news report, which was launched in 2007 in a garage in Scotland by two 24-year olds, is now valued at £1 billion, has grown from two to over 540 employees and more 32,000 shareholders.

Why BrewDog’s tale is so important for the crowdfunding industry? 

Alongside the outstanding narrative the entrepreneurial project has conveyed, the ability of creating a loyal community around the brand, the scalability of the company’s business model, a steady series of successes which changed a microbrewery into one of the most dynamic drinks businesses in the world and so forth and so on, BrewDog represents indeed a turning point for the whole crowdfunding industry. Why?

The discourse around crowdfunding developed over the past years has had its focus on answering the following question: can crowdfunding democratize access to capital?

BrewDog’s experience is a further proof that yes, it can. However, even though much more evidence is needed to demonstrate this thesis, a new question arises:

can crowdfunding still be viewed as alternative finance?

Cheers!

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