Mexican restaurant chain, Chilango, was the first to launch its ‘Burrito’ mini-bond on Crowdcube last week and has also raised more than £600,000 towards its £1m target.
The River Cottage Bond, which allowed private investors to make an initial investment of £500 or more, and pays out 7 per cent fixed interest per annum, will allow the company to expand its award-winning chain of restaurants. Bond-holders also get 10 per cent off at River Cottage’s three Canteens in Axminster, Bristol and Plymouth and free River Cottage membership, with access to a range of exclusive benefits.
Founded by chef Hugh Fearnley-Whittingstall and Rob Love in 1998, River Cottage is a pioneer of SLOW (seasonal, local, organic and wild) produce. With over 20 books, 12 television series, an award-winning cookery school and three Canteen restaurants, the money raised through the River Cottage Bond will help its restaurant chain expand by opening four more locations across the South of England by 2018.
Joint Managing Director, Rob Love commented: “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.”
According to Hugh Fearnley-Whittingstall, who has the role of Creative Director and is the public face of River Cottage: “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.”
Luke Lang, co-founder of Crowdcube, which saw its first mini-bond campaign successfully launch last week, adds: “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. “
