Mini-Bonds Continue to Smash Targets

By AltFi on 15th October 2014

Equity Crowdfunding

The UK’s leading equity crowdfunding platform has now seen all three of its mini-bonds blast by their fundraising targets.

Mini-Bonds Continue to Smash Targets

The latest mini-bond to storm to success has been posted by the Cornwall-based Eden Project. The Eden Project surpassed its initial funding target of £1 million in under 5 hours. That amount was made up of contributions from 175 investors. The Eden Project stated that it would accept overfunding up to the £1.5m mark – and has in fact already reached that total. There are now 355 investors participating in the deal.

So why have Crowdcube’s mini-bonds met with such consistent success? The key is that they allow investors to get exposure to household name companies. The Eden Project is an internationally-acclaimed visitor destination and the world’s largest “rainforest in captivity”. It’s also a brand that investors instantly recognize – and one that they clearly feel comfortable throwing their money at. Crowdcube’s Eden Project and River Cottage mini-bonds filled almost instantaneously. The Chilangos deal – though successful – did not reach its target with quite the same velocity (but ultimately overfunded to around £2.1m). It’s no coincidence that Chilangos is the least established brand of the three that have issued mini-bonds on Crowdcube.

The Eden Project intends to use the funds to craft a new educational facility – with a focus on quality horticulture, cookery and food production. Investors in the deal are looking at 6% APR over a 4 year term. The minimum investment amount was £500.

Luke Lang, Co-Founder of Crowdcube, commented:

"It's brilliant that the Eden Project has become the latest high-profile organisation to use Crowdcube to raise finance. Mini-bonds have emerged as a cost-effective and efficient way for well-established brands to raise growth capital and engage with their customers. By giving people the opportunity to invest in an organisation they love in return for a financial reward, mini-bonds encourage loyalty while also attracting new customers.

"Eden is synonymous with innovation and community, which makes it a great fit for crowdfunding."

Eden Executive Director David Harland also weighed in:

"This is an amazing result. To reach our £1 million target so soon is spectacular and shows that very many people share our vision to establish a world-class learning centre here at Eden.

"We thank everyone for that faith in the future of the young people who will come here to learn new skills and Eden's capacity to deliver something special right here in the heart of Cornwall. We also take our hats off to Crowdcube for the brilliant way they have enabled us to reach our goal in this - our first foray into crowdfunding."

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