Pact Coffee, a London-based coffee company, announced it has decided to close its equity crowdfunding campaign on Crowdcube after realizing that the $1 million funding goal wasn’t going to be achieved.
Pact Coffee, which was founded in 2012 by Stephen Rapoport, revealed that it is on a mission to change the coffee industry for the better by delivering great-tasting, freshly roasted coffee by post. It launched the initiative last month in an effort to raise funds for expand to other markets. Before Crowdcube, the company had reportedly been backed by some of European’s leading venture capitalists and has been recognized as an innovative fast-growing company.
Unfortunately, the campaign kept its steady but slower funding progress and only achieved £178,670 from 871 investors before pulling the plug. A Pact Coffee spokesman shared with Business Insider the bad news about the campaign and explained:
“There was a good steady trickle but there was no way we were going to get to the million. There were lots of small amounts going in but the more sophisticated investors that make these crowdfunding campaigns successful weren’t going through.”
The spokesman continued:
“The ambition remains. We plan to be a global brand and grow quickly. Stephen is looking again at the strategic plan. We’ll still be financing again later in the year.”
Rapoport then provided the following:
“Whilst the business is in great shape today, our customers and the crowdfunding community couldn’t support our future plans and finance strategy in enough numbers to close the round. So we’re doing the smart thing; taking their feedback on board and reviewing our plans before coming back to the table. I’m proud of the business we’ve built and our plans for the future, but not so proud that I’m against revisiting the plans as we learn and grow!”
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