Once in a while, something just makes you go “WOW”. This morning, fellow StartupCafe blogger Mark sent me the link http://www.equityforpunks.com/. Not being quite sure what I would find, I found this video:
[vimeo=http://vimeo.com/7132351]
Now, I don’t even drink beer and I want to invest. Mark’s analysis of the situation is that Brewdog are taking unique way to connect with their customers while raising finance at the same time:
“Brewdog have a strong, aggressive brand, and it’s likely most british investors wouldn’t be happy with them courting controversy they way they have. This way, they get funding from people they know have bought in to the brand, and the same people who have a vested interest in their long term success (even more so now)”
He also said:
“it’s not quite a full-on co-operative, but it aligns the companies goals with those of it’s customers in a way that would be very hard to undo”
it’s not quite a full-on co-operative, but it aligns the companies
Local charity seeks iPhone developer for location-based children's geology game.
Manhattan Bagels did something similar years ago in the US, they put a blurb about selling stock on their paper menus, and customers invested in the then-private company. It did not violate securities marketing laws in the US since it was aimed at the existing customer base and not the general public. The company raised financing this way and was able to grow the restaurant chain.
Reminds me too of the freeware model of funding early stage software companies (free and welcoming of “donations”); also, with secure membership-based internet spaces, web-based companies might be able to pull off a similar financing strategy. However, check w/ a lawyer and respective private stock offering regulations before doing so.