BrewDog fails to reach £25m funding target

The Ellon-headquartered firm had set a £25m target for the fourth round of its Equity for Punks crowdfunding schemes.

But when by its deadline for applications closed on Wednesday, Brewdog announced that it had fallen shorten by £6m, although the firm said would still accept paper applications until 29 April.

BrewDog, which launched its first crowdfunding round in 2009 and has since raised £26m through the scheme, launched its latest Equity for Punks drive a year ago in order to expand its business.

It has yet to say whether the shortfall will impact on those growth plans, which include expanding its brewery in Ellon and opening new bars.

On its website, BrewDog describes the Equity for Punks IV scheme as “the biggest equity crowdfunding campaign ever seen”.

Crowdfunding involves companies raising small amounts of money from a large number of people, typically via the internet.

The craft brewer is set to launch a further round of crowdfunding, to help fund a major expansion in the US.

It plans to replicate the success of its Equity for Punks scheme in the UK by turning to US residents for backing.

Cash raised from the American scheme, to be launched next month, will in part be used to open a new US brewery in Ohio.

BrewDog has estimated the initial costs of establishing the base and a network of BrewDog “brewpubs” across the country at about $25m (£17.3m).