TV designer Kevin McCloud has taken to crowdfunding to raise money for his sustainable housing development company Hab Housing, and netted £1.9 million.
Grand Designs host Kevin McCloud has successfully raised the largest investment ever on a UK crowdfunding platform.
His Hab Housing business, which is looking to build affordable and environmentally-friendly housing and was set up in 2007, has secured £1.9 million through a round which was reportedly 90 per cent overfunded.
The business initially set out to raise £1 million, which it did in 46 days, before going on to extend its round. The money raised will go towards developing the business and seeking out new opportunities in the custom built home market.
Equity crowdfunding platform Crowdcube, which has now seen 70 UK companies raise £13.5 million during its two and a half years of existence, handled the fundraising.
McCloud, founding director of Hab Housing, says that he feels ‘vindicated and invigorated’ by the backing of Hab Housing’s new 649 shareholders.
As part of the deal which sees Hab Housing give away a combined equity share of 25.39 per cent, new backers will also receive preferential terms on a custom build home as well as invitations to project visits and exclusive events. A further 5 per cent dividend has also been outlined by the end of 2016.
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Luke Lang, co-founder of Crowdcube, adds, ‘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.
‘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.’
As with most of investments made through an equity crowdfunding platform, Kevin McCloud’s Hab Housing was eligible for the Enterprise Investment Scheme (EIS), which provides income tax relief of up to 30 per cent.
A partnership between Hab Housing and housing provider GreenSquare completed its first development of 42 sites in Swindon during 2011. A second 78-home project is now on the market in Stroud.