LUMO, a UK-based cyclist apparel startup, has successfully overfunded during its equity crowdfunding campaign on Crowdcube. The company surfaced on the platform last month with a mission to raise 200,000 so that it can start expanding globally.
The company notably designs jackets and bags for cyclists that subtly incorporate ultra-high brightness LEDs. These lights are waterproof, washable and powered by a detachable USB-rechargeable battery unit. They are completely concealed until they are switched on, then visible from up to 400 meters when illuminated.
LUMO also uses quality fabric technology and cycling-friendly design with the aim of ensuring that cyclists are kept dry, their temperature is moderated, and they are comfortable riding their bike. Currently, the company has a patent (number 1414215.2) pending on its system.
Funds from the new crowdfunding campaign will go towards the following:
- Online driven customer acquisition plan.
- Hiring an experienced apparel COO targeted on reducing COGS by 15%; and
- Developing the next phase of LUMO products to include charging of devices on the go and energy harvesting from the fabrics themselves.
Although the campaign has overfunded, LUMO noted it still has a long way to go:
“You will have noticed from our business plan that some of our funding is planned to come from a bank loan. One of the pieces of feedback we’ve had from potential investors is that it would be good to eliminate the need for this by overfunding. That way, all of our capital will be equal and not subject to whatever lending/repayment criteria set by someone without a vested interest in LUMO.
“To that end we have met some more very relevant and interesting potential investors this week and especially today through our drop-in who we hope will join us on the LUMO journey. We don’t know how long we’ll overfund for so if you do know anyone who you think would be interested in joining us, now would be a good time for them to put their investment pledge into Crowdcube.”
LUMO’s campaign is set to close on July 23rd.
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