Raising capital on investment crowdfunding platform Crowdcube, London based coffee perfectionists Taylor St Baristas has closed its mini-bond offer having topped its £1.5 million funding target. According to Crowdcube, 504 investors contributed £1,864,000 for a security that generates an 8% annual rate of return on the 4 year bond. Investors may also choose to receive their “dividend” in the form of a store credit paid out at an equivalent rate of 12% per year.
Established in 2006, Taylor St Baristas today has nine shops in locations such as the City, Mayfair, Canary Wharf and Brighton. The business was founded by Aussie siblings Nick, Andrew and Laura Tolley at a time when quality coffee shops in London were rare.
In 2012, Taylor St Baristas established a Joint Venture with Tesco to create Harris + Hoole – said to be one of the fastest growing coffee chains in the country.
Richard Shaer,CEO of Taylor St, said of the crowdfunding results:
“Crowdcube gave us the opportunity to offer our customers and supporters a safe, efficient and robust platform through which they could invest in Taylor St, reducing our administrative burden and allowing us to reach a wider base of investors.”
Taylor St Baristas will use the capital to double its business over the next two years. A portion of the funds will be used to expand its barista training program – a business segment they view as a key competitive differentiator from other coffee establishments. Management also have plans to extend the brand through sales of Taylor St-branded coffee and merchandise in-store and online.
“Established businesses that have large, regular customer followings are realising that our retail bonds offer an ideal option for raising growth capital”, said Luke Lang, co-founder of Crowdcube. “We are getting enquiries from all sectors, including some familiar household names, so the public will have plenty of exciting opportunities to get involved in the coming year.”
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