Last week Vulpine, a UK-based cycling clothing brand, launched an equity crowdfunding campaign on Crowdcube with a mission to raise £500,000 for product and international expansion. The brand easily cycled past its goal, closing in on £845,00 as of this writing.
Faced with the decision of continuing to overfund, Founder Nick Hussey decided to end the campaign on 1 November. In a pitch update Hussey wrote:
“Having reached £750,000 in a week, from our original full 30 day target of £500,000, we, with current shareholders and the directors, have made a decision to end overfunding soon, so that we can concentrate on Christmas and start nailing what we set out in our plan. All investment pledges will need to be in by midnight, UK time, on Sunday the 1st of November.”
“I’m afraid we cannot accept any others past this point. It may be advisable to place your investment during office hours this week, particularly if abroad, as CrowdCube won’t be able to help if the site doesn’t process your investment over the weekend. We will also stop investment if we reach £1,500,000. Whichever comes first, date or amount.”
With concern to overfunding phase, Hussey remarked that current investors, including himself, would become “diluted,” a motion that went to a vote and was agreed. For those who have or are about to invest in Vulpine, “overfunding won’t change anything except the company you invest in now has more resources to grow faster and is less likely to be diluted later, as we are better funded now.”
What will Vulpine do with the extra funding? Something deliberately transparent:
“Importantly, right now, nothing beyond our £500,000 plan. But we will begin planning out how we can use some of this amazing new resource to build an even better, faster growing company. It’s not there ‘to be spent,'” posted Hussey. “It’s not a luxury. It’s a resource to be carefully metered out on the things that work and we have discussed with you already. Our approach is sensible. There will be no fancy offices, gold thrones, or cycling butlers handing out hot towels on staff rides. You are committing your money to make a more valuable company, so you can get a great return later. That is the focus. We will use it wisely, at the right time.”
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