Early crowdfunding beneficiary Kamm & Sons has returned to the funding method to raise a further £325,000.
Alex Kammerling and his Kamm & Sons ginseng-based alcohol business are being backed through crowdfunding platform Crowdcube for the second time.
The entrepreneur first used the platform in October 2011 when he raised £180,000 for his company which then traded under the name of Kammerlings.
Kamm & Sons’ new £325,000 commitment will be used to export to the more ‘discerning and health conscious’ drinkers of Europe, Asia and America, as well as what it has identified as a high-growth market in China.
The company began life in April 2011 and produces a lower-proof spirit that consists of ginseng, fresh grapefruit, manuka honey and a blend of 42 other natural botanical ingredients. The drink is currently served in five-star hotels, restaurants and cocktail bars.
It is managed by three generations of male Kammerlings and will, this year, be targeting food markets and food festivals such as the Jamie Oliver Big Festival.
Kammerling comments, ‘Crowdfunding is proving that businesses like ours can raise the money they need to grow not just in the UK but also abroad.
‘We what to sell more than 15,000 units this year and this investment will help us to achieve that target. We didn’t even consider the banks for this round because the 17.5 per cent APR interest rates are too high for a small business like ours.
The investment comes soon after Crowdcube marked its first two years of operation by passing the £5 million fundraising level.
Statistics released by Crowdcube shows that 30,239 ‘armchair dragons’ are registered on the platform, with 22 per cent investing more than once. The largest investor portfolio stands at 22 and the single largest commitment to date has been £100,000.
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Luke Lang, co-founder and marketing director of Crowdcube, says, ‘It is great to see small businesses like Kamm & Sons growing as direct result of investment, outpacing British market forecasts for alcohol and now looking to other high-growth markets for future success.’
Lang says that the past 12 months have seen Kamm & Sons more than double the valuation of the business to £1.1 million.
Another company which has used Crowdcube to raise a significant amount of investment is Escape the City. The company, which helps people leave’ unfulfilling’ corporate jobs, initially raised £500,000 in nine days and then extended the pitch by £100,000 to £600,000, raising the extra capital in a further four days.