Brewdog founder James Watt invests £1million in five start-ups

Brewdog founder James Watt has found his Next Unicorn, or rather five of them, taking home part of his £1 million investment.

A few months ago, Watt revealed that he was looking for the next startup company that he can help transform into a unicorn.

A unicorn is a company worth over £1 billion – and since most new businesses fail, it’s seen as a mythical beast, although it may be.

After 780 companies applied, Watt, along with investor Codie Sanchez and comedian friend Dom Joly, narrowed the shortlist to 20 startups.

This Is Money attended the final pitch event at Watt’s central London penthouse last month, where the companies took part in a Dragons’ Den-style experience.

From there, the final five companies were flown to Las Vegas over the weekend to announce the three winners and send two home empty-handed.

However, Watt has decided to invest in all five startups, including edible insect company Yumbug and Basket, a browser extension that lets you store products from any online retailer.

Watt said, “I am so incredibly impressed with the quality of the contestants, and it was very difficult to get down to just five of the 750 who entered. I would like to thank Dom Joly, Codie Sanchez, Matt Cooper and Evelyn McDonald for helping me select the final winners.

“What’s really exciting is that members of the public can now invest in these companies as well. Each of the winning companies is available on Crowdcube, where people can invest pound for pound on the same terms as me.

“This isn’t a competition where you sit back and watch other people make money, the audience can join in too.”

While Watt handpicked and invested his own money in the five companies, crowdfunding carries its own risks and there is no guarantee that you will receive a return on your investment.

Many of the companies are in their early stages and taking risks through crowdfunding can lead to a loss of capital. We take a look at the five companies that secured investments.

1. Basket

Basket is a mobile app and browser extension that lets you store products from any online retailer in one easy-to-access list. It also constantly monitors prices and notifies you of any price drops on things you have your eye on.

It currently supports over 100,000 online retailers, including Amazon, Asos, eBay and Selfridges.

Watt has invested £250,000 in Basket and said: ‘It’s hard to find real innovation in technology and e-commerce, but Basket is something I would 100 per cent use myself. It really helps consumers and I think it has application in the UK and globally.”

2. Mouse

Launched in 2015, Mous makes extra-protective phone cases and accessories, as well as headphones and other consumer technology. Phone cases are on the pricier side, with some costing up to £40, but the hard cases come with a lifetime guarantee.

It has already made an impact, with an impressive 260,000 Instagram followers and 5.5 million views on YouTube per month

Watt has invested £150,000 in Mous. He said: ‘A British start-up company trying to make an impact on a global scale to take on absolute giants. They’ve done a fantastic job so far and have a great team focused on R&D and innovation.”

Watt with the Next Unicorn winners at Brewdog’s Las Vegas rooftop bar

3. Tallow + Ash

Sustainable laundry detergent company Tallow + Ash has yet to launch but has secured £250,000 in investment from Watt.

Since the brand’s announcement in March, more than 30,000 people have tried and tested Tallow+Ash products, which are dye-free, vegan, and cruelty-free.

Watt said: ‘Their mission is to shake up a stuffy industry where all the incumbents have been doing the same thing for decades. It reminds me so much of our mission to shake up beer when we started in 2007.’

4. Unmannered

Uncouth offers personalized and prescription skin care treatments, contrary to Skin&Me, which has taken social media by storm.

Founded by a dermatologist, Uncouth customers will have virtual consultations with skin experts to get prescription treatments. Subscriptions are then sent every 8 weeks.

Watt, who has invested £150,000 in Uncouth, said: ‘Skin problems affect the mental health of so many people every day. I suffered from severe acne when I was a teenager so I feel the pain point here. Their brand is great, their mission is great and this is a company that is going to help a lot of people.”

5. Jamie

Yumbug wants to make edible insects mainstream. It has cleverly converted insects into protein and turned them into tasty snacks and recipe boxes.

The team, led by Leo and Aaron, focuses on the hospitality market and is already available in a handful of top London restaurants.

Watt, who has invested £200,000 in the bug-based venture, recently asked his followers for their thoughts on a bug burger courtesy of Yum Bug.

He said: ‘The world of nutrition is about to change drastically, and I think Yum Bug can shake it up and produce more sustainable ways to get the protein we all need. Once you get over eating insects, it’s surprisingly delicious.’