Raising capital on Crowdcube, River Cottage, a restaurant and food business founded by Hugh Feamley-Whittingstall & Rob Love, quickly raised £1 million in min-bonds – a new type of security offering for the crowdfunding platform. It took just 36 hours for 283 investors to scoop up these bonds which pay holders a 7% fixed rate per year. A minimum investment of £500 was required but purchasers also benefited by receiving 10% off purchases at River Cottage’s three different locations in, Axminister, Bristol and Plymouth plus free River Cottage membership. The new funding will allow the small business to expand their chain of restaurants. This is only the second mini-bond offering Crowdcube has launched on their platform. The very first was the Burrito Bond offered earlier this month for another restaurant chain Chilango.
Fearnley-Whittingstall shared his vision of River Cottage;
“The River Cottage brand grew out of our SLOW food ethos and that remains at the heart of the business. We’re committed to helping people eat amazing food and this investment opportunity means we can continue to do that to more people in more places. We’re passionate about our business and we want our investors to be as well.”
River Cottage was started back in 1998 and was a pioneer in the SLOW food movement (seasonal, local, organic, wild). The small company has published over 20 books, 12 television series, has an established cooking school alongside their three existing restaurants. The funds raised will facilitate the opening of four more restaurants across south England by 2018.
Love commented on the successful funding round;
“We’re thrilled that the River Cottage Bond was so well received by investors. I am a huge advocate of crowdfunding and this new innovation from Crowdcube helps reduce the cost and complexity of raising finance and provides an effective way for more established brands, like River Cottage, to raise growth funding without the banks.”
Crowdcube, a major player in the nascent investment crowdfunding industry, has quickly realized the potential of technology to match businesses with investors. Luke Lang, co-founder of Crowdcube stated, “It’s been an exciting time for disrupting the mini-bond market”. Crowdcube continues to push forward making investing opportunities, which were previously only available to the elite, more accessible – while facilitating a more meaningful relationship between investors and small companies.
Have a crowdfunding offering you'd like to share? Submit an offering for consideration using our Submit a Tip form and we may share it on our site!