BREWDOG GOES FOR CROWDFUNDING

IF THERE’S A TREND that’s hot right now, it’s crowdfunding as small, independent businesses increasingly find success by pitching themselves to potential investors through the social media forum. Particularly impressive has been Scottish brewer Brewdog which closed its “Equity for Punks” share ownership offer a monthly early after hitting its £4.25 million (US $7 million) investment target. The independent brewer – whose brands include Punk IPA, 5am Saint and Dead Pony Club – claimed it had set a crowdfunding record with the scheme, which offered a stake in the company to followers and fans of the brewery via social media. It has now raised over £7 million (US $11.5 million) through three rounds of Equity for Punks share issues to over 12,OOO investors. The company has been on a rapid expansion path including several craft beer bar openings and a new brewery. It also has plans to open a chain of specialty beer shops. Co-founder James Watt said: “With three successful rounds of Equity for Punks completed, we have continuously displayed that crowdfunding has become a worthwhile and innovative means for business growth. We have ushered in a brave new world, and you can expect to see more businesses launching similar schemes in 2O14. Crowdfunding is no longer just a fad or buzzword, it is a legitimate alternative financial system.”