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

Brewdog founder James Watt has found his Next Unicorn, or rather five of them, which will take home a share of his £1million investment.

A few months ago, Watt revealed he was looking to find the next start-up company that can he can help transform into a unicorn.

A unicorn is a company with a valuation beyond £1billion – and as most new businesses fail, it’s seen as a mythical beast, although it can be done.

After 780 businesses applied, Watt, alongside investor Codie Sanchez and comedian, and friend, Dom Joly, whittled the shortlist down to 20 start-ups.

Brewdog founder James Watt launched the Next Unicorn competition to find the next best start-up, and now he reveals the five winners 

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

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

However, Watt has decided to invest in all five start-ups including edible bug business Yumbug, and Basket, a browser extension that lets you save products from any online retailer.

Watt said: ‘I have been so incredibly impressed by the quality of the entrants to the competition, and getting down to just five from the 750 that applied has been really tough. I want to thank Dom Joly, Codie Sanchez, Matt Cooper and Evelyn McDonald for their help selecting the eventual winners.

‘What’s really exciting is members of the public can now invest in these businesses too. Each of the winning companies are available on Crowdcube, where people can invest pound-for-pound on the same terms as me. 

‘This isn’t a competition where you just sit back and watch other people make money, the public can get involved too.’

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

Many of the companies are at an early stage and risking via crowdfunding could lead to the loss of capital. We take a look at the five companies that secured investment. 

1. Basket

Basket is a mobile app and browser extension that lets you save products from any online retailer into one easily accessible list. It also continually checks the prices and notifies you of any price drops on things you’ve got your eye on.

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

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

2. Mous

Mous, which launched in 2015, makes extra-protective phone cases and accessories, as well as headphones and other consumer tech. Phone cases are on the pricier side, with some costing up to £40, but its hard cases have a lifetime warranty.

It’s already made an impact, racking up an impressive 260,000 Instagram followers and 5.5million views on Youtube a month

Watt has invested £150,000 in Mous. He said: ‘An upstart UK company trying to have an impact on a global scale to take on absolute giants. They’ve done fantastically well so far and have got a great team focused on R&D and innovation.’

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

3. Tallow + Ash

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

Since announcing the brand in March, over 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 sector, 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 set out in 2007.’

4. Uncouth

Uncouth offers personalised and prescribed skincare treatments, going up against the likes of Skin&Me which has taken social media by storm.

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

Watt, who has invested £150,000 in Uncouth said: ‘Skin issues affect so many people’s mental health on a daily basis. I suffered from severe acne when I was a teenager, so I feel the pain point here. Their brand is fantastic, their mission is great, and this is a business that is going to help a lot of people.’

5. Yumbug

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

The team, run by Leo and Aaron, are targeting the hospitality market and are already available in a handful of top restaurants in London.

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

He said: ‘The food scene is going to change dramatically, and I think Yum Bug can shake it up and produce more sustainable ways to get the protein that we all need. Once you get over the fact that you’re eating bugs, it’s surprisingly delicious.’

This post first appeared on Dailymail.co.uk