Crowdcube’s mini-bond success for some exciting new UK companies
Equity crowdfunding platform, Crowdcube, has announced that a fourth high-profile brand has launched a mini-bond on its website in order to raise growth capital.
Check out who else has raised through the mini-bond feature on the equity crowdfunding site:
In October Eden Project beat the £1 million funding target for its mini-bond on Crowdcube in less than five hours, and went on to raise £1.5 million from more than 350 investors, which it intends to use to build a new learning village. The four-year bonds promise returns of six percent per annum.
Earlier this year Mexican restaurant chain Chilango raised over £2 million from its ‘Burrito Bond’ to help it roll out more outlets across London, while Hugh Fearnley-Whittingstall’s River Cottage raised £1 million to open more Canteens across the south of England.
Mini Bonds explained
A mini bond – also known as a retail bond – is an unlisted bond usually issued by companies directly to their customers and the general public. John Lewis, The Jockey Club and Hotel Chocolat are among other well-known UK brands that have successfully issued mini-bonds. Capita Registrars estimates that the value of the mini-bond industry will rise to £8 billion by 2017 (from just under £90 million in 2012).
Luke Lang, co-founder of Crowdcube said: “Mini-bonds are increasing in popularity as a cost-effective and efficient way for well-established brands to raise growth capital and really involve their customers in the business. Until now, however, launching a mini-bond has been a time-consuming and expensive process. Crowdcube’s Mini Bond takes away the complexity and costs for businesses. For customers and investors, the opportunity to invest in companies they already know, and want to support, as well as receive a regular financial return on their investment, can be hugely appealing.”
Crowdcube’s growing community of investors reached the 100,000 mark earlier this month.