This is the biggest amount ever raised using an equity crowdfunding platform and Crowdcube has now helped over 70 British businesses to raise a total of £13.5 million.
The housing development company extended its pitch after meeting its original £1 million target in just 46 days – it overfunded by 90 per cent.
Hab Housing Limited (Hab) was established in 2007 by writer, designer and broadcaster Kevin McCloud with the aim to show that mass housing could be designed to create beautiful places which maximise the opportunity for people to live happy and fulfilled lifestyles with reduced environmental impacts. A total of 649 people are new shareholders in Hab Housing, making investments ranging from £100 to £150,000.
Founding director Kevin McCloud says: “We find it gratifying that so many people have joined Hab’s merry band of shareholders. From day one, Hab has been fuelled by passion, commitment and vision, and although it has felt lonely at times we now feel vindicated and invigorated by the backing of the people who have thrown their encouragement and financial support behind us. Crowdcube have been an excellent bunch to work with through the funding process, aiding greatly in demystifying the peer-to-peer funding world.”
Luke Lang, co-founder of Crowdcube, comments: “We’re thrilled that an innovative company such as Hab Housing turned to Crowdcube to help it take advantage of the new market opportunity it has identified. Britain is full of people with great ideas. Crowdfunding is transforming equity finance by giving budding businesses an alternative way to attract investment, through showcasing the opportunity online and inspiring a new breed of angel.”
Those investing in Hab Housing are eligible for the Enterprise Investment Scheme (EIS), which offers income tax relief of up to 30 per cent on the amount invested and no capital gains tax on disposal.
As well as now owning a combined share of 25.39 per cent of the equity in its business, investors have been offered preferential terms on a Hab custom build home, invitations to project visits and exclusive events with Kevin McCloud. Hab Housing aims to offer investors a 5 per cent dividend by the end of 2016.