A successful exit for crowdfunders in craft beer

Megabrewer AB InBev will buy the Camden Town Brewery brand for around £85m after the craft beer maker raised £2.75m in crowdfunding.

774-Camden-634

Camden Town Brewey: snapped up for £85m

Megabrewer AB InBev will buy the Camden Town Brewery craft beer brand for around £85m. Camden raised more than £2.75m in crowdfunding through Crowdcube earlier this year, but needs further investment, said CEO and founder Jasper Cuppaidge.

What the commentators said

Nonetheless, Cuppaidge said that Ab InBev's offer represented "a very successful exit" for investors, "particularly relative to the size of the shareholders' investment". Shareholders can expect to make £1.0861 per share up front, though they can also choose to receive up to £1.2526 per share depending on sales growth over the next five years.

The offer "doesn't seem unreasonable", reckoned Kadhim Shubber on the Financial Times's Alphaville blog. One investor told Shubber that they bought 851 shares this year for £550, yielding a 68% return if they take the cash now. According to Crowdcube's Luke Lang, the sale proves Crowdcube investors to be "shrewd judge[s] of potential".

Camden's pitch had led to "manyfinance and industry experts being publicly disparaging of its valuation"; Lang thinks those experts "will be choking on their Christmas turkey". No wonder he's crowing: as CrowdFundInsider.com's JD Alois said, Camden is "among the few equity crowdfunding offers that have provided investors with a measurable exit".

Recommended

Share tips of the week – 15 October
Share tips

Share tips of the week – 15 October

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
15 Oct 2021
Trading: stash the family cash in this cheap wealth management firm
Trading

Trading: stash the family cash in this cheap wealth management firm

Wealth management is a growth market. Rathbone Brothers should be a prime beneficiary – and looks cheap. Matthew Partridge explains the best way to pl…
12 Oct 2021
What the best-performing investment trusts of the past 20 years can teach us
Investment trusts

What the best-performing investment trusts of the past 20 years can teach us

Forty-two trusts have risen more than tenfold over the last two decades. What made the winners stand out? And how can we identify future outperformers…
12 Oct 2021
Activision Blizzard: a cheap play on videogames
Share tips

Activision Blizzard: a cheap play on videogames

Videogame maker Activision Blizzard has been in the news for the wrong reasons lately. But it has a bright future, says Stephen Connolly.
11 Oct 2021

Most Popular

How to invest in SMRs – the future of green energy
Energy

How to invest in SMRs – the future of green energy

The UK’s electricity supply needs to be more robust for days when the wind doesn’t blow. We need nuclear power, says Dominic Frisby. And the future of…
6 Oct 2021
Inflation is still one of the biggest threats to your personal finances
Investment strategy

Inflation is still one of the biggest threats to your personal finances

Central bankers and economists insist inflation will be gone by next year. We're not so sure, says Merryn Somerset Webb. So if you haven’t started to …
1 Oct 2021
How to invest as we move to a hydrogen economy
Energy

How to invest as we move to a hydrogen economy

The government has started to roll out its plans for switching us over from fossil fuels to hydrogen and renewable energy. Should investors buy in? St…
8 Oct 2021