Pubs look to crowdfunding to keep their local alive

17-Oct-2018 - Last updated on 26-Oct-2018 at 12:44 GMT

Crowdfunding initiatives: how beer and pubs are getting involved

With new figures showing as many as 29 pubs are being closed down each week, it comes as no surprise that some landlords are depending on crowdfunding to keep their boozer alive.

By uniting people with a business that serves a community purpose, the great British pub is a perfect example of how communities form stronger bonds.

But in the current economic climate, and with more and more locals being forced to close their doors, it comes as no surprise that communities are rallying together to save the institution that remains at the heart of Britain’s social life.

Crowdfunding is an example of disintermediation: it cuts out the middleman and is a simple way of raising finance by asking a large number of people for a small amount of money.

Crowdfunding success

BrewDog, now the UK’s fastest growing food and drinks brand, is a Crowdcube success story.

The independent Scottish craft brewery, smashed UK crowdfunding records after their campaign, Equity for Punks V, secured £26.2m worth of investment in just 12 months.

Launched in October 2017, the Aberdeenshire brewer set out to raise £10m, a target it reached in under 90 days.

James Watt, co-founder of BrewDog, said their success came from demonstrating their business was “built on passion and soul”.

He said: “Equity for Punks V is the most successful equity crowdfunding campaign the world has ever seen, and we’re thrilled to have expanded our awesome global community, which is the lifeblood of our business.

“We’re proud to have an army behind us, joining us on this wild ride, sharing in our success and helping shape the business we become.”

Support

Since BrewDog's success, the beer world has taken to crowdfunding in a huge way with Crowdcube helping community owned-pubs raise more than £1.6m.

In the last three months, £1.2m has been raised for five pubs across the UK on the crowdfunding website.

Mark Newcombe, chairman of the Craufurd Arms, in Maidenhead, Berkshire, saw his pub raise £310,000 on Crowdfunder in just 39 days.

“Two years ago, the Craufurd Arms looked destined to become the latest pub to call last orders for the final time,” he said.

“It was put on the market in October 2016, prompting swift formation of a community action group among the regulars who were determined to save their local.

“The Craufurd Arms Society raised £310,000 in community shares from 229 people who invested between £250 and £20,000.

“Under community ownership, we are investing any surplus into improving the pub, and with the support of well over 200 members, the pub is now more popular than ever."

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