Need investors for your business?

7th February 2017

It seems that going to the bank to ask for a loan for your business these days is old hat.   The way forward could be crowd funding.

Crowd funding works by a community of like-minded people who pool their money together to back start-up, early and growth stage businesses.  Anyone has the opportunity to become an ‘armchair Dragon’, building upon their own investment portfolio and supporting businesses and with Article 50 soon to be triggered, buying British is the new trend.

Kent based Chapel Down, who produce a world-class range of sparkling and still wines, secured over £4m with crowdfunding in 2013 through Seedrs to fund a new state-of-the-art brewery in the heart of Ashford to expand production of its award winning Curious Brew range of beers.  Already trading on the ISDX Growth Market they were the first listed company to undertake an equity crowdfunding campaign in the world.

Likewise, Sussex-based Bedlam Brewery, have also raised more than their target amount of £330k with CrowdCube.

Another brewer, Aberdeen based BrewDog reached £10m in three weeks, with more than 2,700 people investing in the company’s bond, again through CrowdCube.

Seedrs and CrowdCube are just two of a number of online crowdfunding platforms created to enable young or growth-focused businesses get funded.

But it’s not just breweries looking for outside investment.  Funding has been raised for a theatre production, pizza delivery firm, motor company and medical organisation and the amounts to be raised can vary between less than £100,000 to millions.   Only recently a Brighton based business, Circuitree, who has created a Cirrus smart battery which lets intermittent solar energy be captured and used on demand, received an additional 50% of its £100,000 target in just five days.

If you need more information on raising capital, including the option of crowd funding, or would just like to have a discussion about growing your business, please do not hesitate to contact Sara Carpenter, Corporate Partner at Rix & Kay by emailing saracarpenter@rixandkay.co.uk or by telephone on 01732 448302.

Rix & Kay’s Corporate Team is one of the strongest in the South East.  The Team provide the entire range of corporate services to businesses of all sizes.  Expertise includes corporate advisory, shareholder agreements and commercial contracts to M&A, financing and restructuring.