Crowdcube’s River Cottage Bond allows private investors to make a first investment of £500 or over and pays out a fixed interest of seven per cent per annum. River Cottage intends to use the funding to expand its chain of restaurants, with plans to open sites in four new locations in the South of England by the end of 2018.
River Cottage bond-holders will also be granted 10 per cent off at the business’ three canteens in Bristol, Plymouth and Axminster, and they also gain River Cottage membership for free.
Join managing director of River Cottage Rob Love said: “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.”
The River Cottage brand supports SLOW produce, which stands for produce that is seasonal, local, organic and wild. The brand currently has three Canteen restaurants, a cookery school, 20 books and 12 television series, and will expand the restaurant chain further with the crowdfunding money.
Creative director for River Cottage Hugh Fearnley-Whittingstall said: “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.”
Crowdcube was the world’s first equity crowdfunding platform and has more than 73,000 investors registered with it. Mexican restaurant chain Chilango was the first restaurant to launch its Burrito mini-bond through Crowdcube last week, and has raised more than £600,000 of the £1m it wants.
Co-founder of Crowdcube Luke Lang said: “It’s been an exciting time for disrupting the mini-bond market - Chilango’s Burrito Bond was the first to launch and now the River Cottage Bond.
“We’re determined to make investing more accessible, affordable and rewarding, whilst giving established brands an effective way to source expansion capital and engage with their customers in a more meaningful manner."