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Vagabund Brauerei

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Berlin's award-winning craft brewery uniting German craftsmanship with American creativity.

277%
 - 
Funded 8 Dec 2021
€100,053 target
€283,779 from 307 investors
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Business overview

Location Berlin, Germany
Social media
Website www.vagabundbrauerei.com
Sectors Food & Beverage Mixed Digital/Non-Digital Mixed B2B/B2C
Company number HRB137356B
Incorporation date 1 Oct 2011
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Investment summary

Type Equity
Valuation (pre-money) €4.1M
Equity offered 6.33%
Share price €107.7
Tax relief N/A
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Business highlights

  • Experienced 72% offsite growth since January 2020.
  • Sold through EDEKA and REWE grocery stores in Germany
  • Meininger’s International Craft Beer Award (Session IPA - Gold)
  • Germany's best Brewpub 7 years in a row (RateBeer)
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Key features

  • Secondary Market
  • Seedrs nominee min. €10.77 +
  • Idea
  • Key Information
  • Team
  • Updates
  • Investors 307
  • Discussion
  • Documents

Idea

Introduction

Three Americans travel across the Atlantic to Berlin, bond over music and beer, and form a band. The band didn’t make it, but its spirit of creativity and improvisation led to the foundation of Vagabund Brauerei in 2011. From our early beginning as a brewpub till today, we have strived to pair German beer craftsmanship with American brewing creativity. We have grown together with the craft beer industry, developing over 190 styles of beer, while being voted RateBeer's best Brewpub in Germany for 7 years in a row. In 2021 we opened our brand new production facility just down the street from our original location where we can brew 20 times as much per batch while cutting costs, improving on quality, and staying true to our vision. For us, beer is more than just a thirst quencher. It is part of the social fabric of our lives. And it is part of a larger sensory experience that includes music, food, and good people. This is the vision that we want to bring to new customers in Europe.

Substantial accomplishments to date

- Business incorporated in October 2011

- Crowdfunding campaign in 2013 (€22,295 pledged from almost 200 early supporters), press coverage from the Washington Post, Die Zeit, NYT, etc.

- Opening of our first nano brewery and on-trade location (the Taproom) in July 2013

- Voted RateBeer's best Brewpub Germany for the first time in 2014 (and every single year since then)

- Taproom's production at capacity in 2016

- Start of the expansion project - location scouting in 2017

- Signature of the long-term lease for our new brewery and bar (the Kesselhaus) in 2018, new shareholders onboard

- Received institutional support for equipment and renovation costs

- Start of the renovation at the Kesselhaus (End of 2018)

- COVID: within 6 weeks pivot from serving almost exclusively restaurants, bars and bottleshops to focussing on sales to supermarkets and other retail outlets growing 72% offsite since January 2020*

- Opening of the Kesselhaus to the public in the summer of 2021

- Meininger’s International Craft Beer Award Gold Medal (Session IPA) won in 2021

* Based on unaudited management accounts

Monetisation strategy

We generate revenue through the production and sale of our craft beer both on- and off-trade, catering to both B2B and B2C customers in Germany and the rest of Europe.

* B2B sales
- Signed a growing number of grocery stores belonging to large retailer chains (EDEKA, REWE, BUDNI stores in Berlin and other large German cities)
- Expanded our footprint of bars and restaurants in Berlin and other large German cities (crucial for brand recognition)
- Listed with several craft beer webshops in Germany and abroad (beerwulf.com, kalea.at, craftbeer-shop.com, etc.)
- Listed with the leading Ultra-Fast Grocery Delivery Platforms in Germany (Gorillas, Flink, in Berlin and other large German cities - Hamburg, Frankfurt, Düsseldorf...)
- Growing our Direct B2B sales (direct sales to corporate, organization of on-site events, etc.)

* B2C sales - Germany and Europe
- Through our on-trade operations on our two locations (Taproom and Kesselhaus)
- Webshop sales with delivery throughout the EU

Use of proceeds

The amount raised will be used to fund the following activities:

- 50% of the sum will go towards hiring a new salesperson who will focus on export sales (EU and UK)

- 25% of the sum will go towards creating a dedicated marketing budget for our German and European expansion, and cover expenses for at least one year

- 25% of the sum will serve as an operations buffer with a focus on expenses supporting growth.

Our stretch goals if we go over our target:

- Purchase of further fermentation tanks to expand production

- Purchase of additional equipment to improve production efficiency or extend our product range (e.g. towards hard seltzer, non-alcoholic and low-ABV beer)

- Further investment in marketing

Key Information

Outstanding Debt

The company has the following loans to cover the cost of Vagabund’s new brew system, renovation of the building, and initial running costs:

Shareholder convertible Loans:

There are shareholders loans totalling 590,000 EUR.
○ 240,000 EUR of this has a 6% interest rate
○ 350,000 EUR of this has a 5% interest rate

Both of these loans are due to be repaid by May 2024.

These lenders also have the unrestricted right to convert the loan, in whole or in part, at a valuation of 2,900,160 EUR. If the loans are converted to shares investors will get diluted.

Bank Loans:

The company also has the following bank loans totalling 2,160,000 EUR:

Berliner Sparkasse Bank
○ 430,000 EUR, interest rate of 2.90%, repayable on 30/09/2029
○ 150,000 EUR, interest rate of 2.90%, repayable on 20/09/2024
○ 50,000 EUR, interest rate of 2.90%, repayable on 30/07/2023
○ 480,000 EUR, interest rate of 2.97%, repayable on 30/09/2031
○ 50,000 EUR, interest rate of 5.44%, repayable on 30/09/2023
○ 300,000 EUR, interest rate of 3%: This is a revolving credit line, on which the interest is paid.

Commerzbank AG
○ 700,000 EUR, interest rate of 1.97%, repayable on 30/08/2030

The funds raised in this round will not be used to repay these loans.

Potential Additional Loan

A bill of up to 70,000 EUR is due in December for the brew system.

The company are therefore looking to secure another shareholder's loan for the total amount of 70,000 EUR. This loan will have an interest rate of 6% and is due to be repaid quarterly, for 3 years.

Funds raised as part of this round will not be used to pay this loan.

Fractional Shares

Please note that the share price for this round is €107.70. Due to this high share price, we have decided to allow investors to hold fractional shares. This means that we have reduced the investment multiple to €10.77 (representing 1/10th of a share), with the minimum investment being €10.77. As these shares will be held via the Seedrs Nominee, fractional entitlements are possible.

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Investing involves risks, including loss of capital, illiquidity, lack of dividends and dilution, and should be done only as part of a diversified portfolio. Please read the Risk Warnings before investing. Investments should only be made by investors who understand these risks. Tax treatment depends on individual circumstances and is subject to change in future.

This webpage has been approved as a financial promotion by Seedrs Limited ("Seedrs"), which is authorised and regulated by the Financial Conduct Authority. It is not intended to be a promotion of any individual investment opportunity and is not an offer to the public. The summary information provided about investment opportunities on this webpage is intended solely to demonstrate the types of investments available on the Seedrs platform, and any investment decision should be made on the basis of the full campaign. Full campaigns are available to investors who have become authorised to invest on the Seedrs platform. All investment activities take place within the United Kingdom, and any person resident outside the United Kingdom should ensure that they are not subject to any local regulations before investing.

Seedrs does not make investment recommendations to you. No communications from Seedrs, through this website or any other medium, should be construed as an investment recommendation. Further, nothing on this website shall be considered an offer to sell, or a solicitation of an offer to buy, any security to any person in any jurisdiction to whom or in which such offer, solicitation or sale is unlawful. Seedrs does not provide legal, financial or tax advice of any kind. If you have any questions with respect to legal, financial or tax matters relevant to your interactions with Seedrs, you should consult a professional adviser.

Tax Relief (SEIS)

This business is eligible for SEIS relief - providing qualifying investors with income tax relief of 50% of their investment and certain other tax reliefs. Tax treatment depends on individual circumstances and is subject to change in future. Click to learn more.

Tax Relief (EIS)

This business is eligible for EIS relief - providing qualifying investors with income tax relief of 30% of their investment and certain other tax reliefs. Tax treatment depends on individual circumstances and is subject to change in future. Click to learn more.

Valuation (pre-money)

Valuation rounded from €4,109,832

This is the fully-diluted pre-money valuation of the business (i.e. before the new investment comes in and including issued options and other equity interests). In contrast, the post-money valuation is based on inclusion of the new investment in the value.

It is calculated as the pre-money valuation plus the amount of new investment. e.g. If Company A is ascribed a pre-money valuation of £1,200,000 by prospective investors investing £300,000, its post-money valuation is £1,500,000.

Pitch type

There are 5 types of investment pitch available on Seedrs.

  • Equity
  • Convertible
  • Fund
  • Cohort
  • Secondary

Investing in a regular equity campaign is the simplest and most common way to invest in a startup. You decide which business you want to invest in, and if the campaign hits its funding target then you will become one of their shareholders. As the company becomes more valuable, so do your shares; allowing you the opportunity to share in the future success of the business.

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Equity Offered

The equity offered is the percentage of the company’s shares being issued in return for the amount of investment raised.

When the amount raised is less than 100%, the equity offered is based on the target raise. Once the company has raised over 100% it is based on the total raised.

In some scenarios, entrepreneurs may accept additional direct investment after closing their Seedrs campaign. Provided this is within 6 months of the closing and on the same terms, we do not typically offer pre-emption rights on that extra investment (where you have the opportunity to invest again to maintain your percentage shareholding).

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Seedrs nominee

This shows if you are able to choose, when making an investment, that you be represented by, and your shareholding be managed by, the Seedrs nominee.

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Custodian

If you invest in this Campaign, Seedrs will act as Custodian rather than provide our standard nominee service. This is due to the fact that the business is not directly involved in the share sale and Seedrs will not benefit from any rights under a shareholder agreement. As a result, Seedrs will handle administrative tasks as we do normally, but you will not have information or voting rights, updates from the business, preemption on future fundraising, or ongoing support about business trading activity.

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Secondary market

This shows if the business has opted-in or opted-out of allowing its shares to be bought and sold on the secondary market.

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Direct investment

This is an option to invest and hold shares 'directly' in the company (rather than via the Seedrs Nominee). This option is only available to those investing over the threshold amount, which is determined by the fundraising company.

If you choose to hold your shares directly, you will be responsible for any contractual or administrative arrangements with the company you are investing in.

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Payment options

We are not able to accept card payments for investments into this sector. You can pay for your investment by creating a bank transfer, using funds in your investment account or create a Pay by Bank payment. Your investment will only be completed once the funds have reached our account.

Business Involvement

This Campaign offers shares for sale in business that is not directly involved in this Campaign or the sale. As a result, the Campaign and post-investment experience, including investor rights, will differ from a business-led campaign on Seedrs. Most notably, the business will not engage with investors in the discussion forums both during and after the sale or provide any updates to investors.

Learn more here

Payment options

We are not able to accept Pay by Bank payments for investments into this sector. You can pay for your investment with a card payment, by creating a bank transfer or by using funds in your investment account. Your investment will only be completed once the funds have reached our account.

Drawdowns

This campaign offers the ability to pay for an investment by drawdowns.

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