BrewDog launches Equity for Punks V on Crowdcube

Brewdog’s CEO James Watt outlined on their forum earlier this year how he aims to achieve a £5bn valuation in the next few years before a listing. (Sorry, couldn’t find a link).

If I recall correctly his plan was basically to expand their Scottish and American breweries and launch one in Australia, along with continuing with all the bar launches and product development they’re renowned for. Their track record for achieving their goals is unmistakable and my trust in the management is in the “just take my money” zone.

A lot of people will point at the lofty valuation as a reason not to invest. £1.8bn to £5bn is nothing compared to what other crowdfunding opportunities might promise (See: Monzo, Freetrade etc), however a lot of people wouldn’t invest in round 4 for this reason also, saying there wasn’t any upside about 5 “bags” ago.

To me it feels like buying £50 vouchers for £23.50. The only catch is that you can’t redeem them for a few years, and a few doesn’t mean “3” - nobody knows how many years.

If you’re already a shareholder you can actually buy more shares privately for serious discounts on the price they’re raising at now. I’ve been buying some more of these £50 vouchers for about £17 each. You can find sellers on their forum.

Normally I’d be worried about people selling way below market price, but in this case there is clearly a glut of sellers as the buyers from many years ago are all sitting on huge paper profits and are desperate to convert that paper into beer money. It’s easy to sell at a 30% discount when you’re taking a profit of hundreds or thousands of percent.

This is a great opportunity to help those people out and also add value to your portfolio.

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