Brewdog bond smashes target to raise £10m record breaker crowdfund pot

By Daniel Lanyon on 29th December 2016

Equity Crowdfunding

A year after its last debt raise, Brewdog has reached a new record for crowdfunding offering 7.5 per cent to holders of its new mini-bond via Crowdcube. 

Brewdog bond smashes target to raise £10m record breaker crowdfund pot

Scottish-craft beer brewer Brewdog has beaten its latest target for raising cash after securing £10m of debt in its latest mini-bond.

Founded in 2007, the firm has been one of the most-widely known companies to raise money from 'the crowd'. It claims growth rates to make traditional brewers weep, mostly funded through several rounds of equity raising as well a mini-bond issued last year, of 6.5 per cent over a four year term.

This round of debt issuance beats last year’s, offering a 7.5 per cent annual interest payments.

A total of 2756 investors are backing the raise which started on 2 December and raised nearly £1m in the first 24 hours. By the 20th of December, the bond had raised over £5m. That number has now doubled to £10m.

But what’s on offer to investors? This new proposition, offering a higher rate of income, similarly comes with a four-year term as last year’s bond after which the principal will be repaid. Payments are biannual. Investors can gain exposure with as little as £500.

Brewdog says it has been profitable every year since 2008 and is on track to deliver EBITDA of £6m in 2016. The new cash, the firm says, will help it to grow revenues further in 2017 by an astonishing 80 per cent. The money will be used in investments in staff, infrastructure, equipment and working capital.

Rupert Taylor, CEO of AltFi Data, last year crunched the numbers in an article for AltFi on Brewdog’s equity crowdfund raise ‘Equity for Punks’. The share based fundraise featured a questionable valuation, with this suggesting the equity offered little to no upside, he argued, and would also be wiped out first in the event of a default.

Furthermore, the round suffered from poor disclosure, and offers its investors “B Shares” – which carry significant dilution risk.



30 Dec 2016 11:59am

A secondary market would earn CC quite a lot of money (taken into account the experiences of Bergfürst in Germany)

AltFi Amsterdam Summit 2018

AltFi is returning to Amsterdam for its second annual Summit in the city. The inaugural event last year was a roaring success, with key figures from across Continental Europe's alternative finance and digital banking sectors highlighted. These included Jeroen Broekema, managing director of Funding Circle Netherlands, and Mieke van Engelen, head of innovative partnerships at ABN AMRO's standalone lending platform, New10.

5th November 2018

Companies in this Article:

AltFi Data

More like this:

Property crowdfunding platform set to launch

15th October 2018
George Geddes

Seedrs appoints two new board members

17th September 2018
George Geddes