When the time comes in a business’ lifecycle to raise cash, the usual choice of routes seems narrow and often arduous, often requiring the release of a significant portion of equity or agreeing to limiting bank terms. But what other choice is there?
Well, Brewdog is trialling an alternative. For Brewdog’s founders, the well-trodden paths of venture capital and bank funding not did appeal. Instead, they have raised successive rounds of investment by releasing shares for purchase by members of the public, directly from the company itself. It calls this scheme ‘Equity for Punks‘, giving us some clue as to the impression of counter-convention they have cultivated to appeal to their share-buying fans. Along with a stake in the company, shareholders are also entitled to a range of discounts and benefits. The founders have promised to facilitate a market for the shares by 2015, as they are currently very difficult to cash in, not being listed on a stock exchange.