Crowdcube secures expansion plans for the UK’s most exciting new alcoholic drink
Kammerling’s, the brand behind a unique ginseng-based alcoholic spirit, has successfully raised capital to ensure the next stage of its expansion. Developed over the last five years by ex-bartender, author and drinks expert Alex Kammerling, the firm has secured funding from 85 ‘armchair’ investors through the equity crowdfunding website, Crowdcube. In return for 23 percent of the business, Kammerling’s raised £180,000 to fund its expansion plans.
After only three months Kammerling’s reached its target and is looking forward to offering the more discerning, health-conscious drinker an exciting new alternative to the Gin, Bitters and Pimms product range of alcoholic drinks.
Served straight from its distinctive medicine-style bottle the drink can be enjoyed over ice, with mixers or blended with cocktails. Kammerling’s is classed as a lower-proof spirit (33% Alcohol By Volume). Its unique taste arises from ginseng, fresh grapefruit, manuka honey and a secret blend of 42 other natural botanical ingredients that only Alex and a few close members of his family have knowledge of.
“We initially approached the high street lenders with our business plan in the hope of raising enough capital to move our project forward and grow the business. With banks demanding interest rates of more than 15 percent, we decided to look elsewhere. Crowdcube offered us a totally unique way to secure the funding we needed. It allowed us to engage with ordinary people who we believe recognise exciting new investment opportunities.” said Alex Kammerling.
Alex Kammerling, owner of Kammerling's
He continued, “The whole concept of crowdfunding has proved to be an innovative and successful way to raise capital, while helping small businesses such as Kammerling’s to create advocates for exciting new products.“
Launched in April 2011 Kammerling’s is already proving popular with prestigious 5-star hotels, restaurants, cocktail bars and wholesalers across London. With international sales already secured, the additional funding secured through Crowdcube will help position Kammerling’s as a truly global brand.
Crowdcube is the first crowdfunding website in the UK to enable investors to receive shares in the small businesses that register on the site to raise finance. Instead of competing for limited business angel or venture capital funding or hard to get and expensive bank finance, small businesses use Crowdcube as a platform to connect with ordinary people who provide investment in exchange for equity.
Darren Westlake, co-founder and CEO of Crowdcube said: “It is young and dynamic businesses such as Kammerling’s that are so important to our economy and for getting Britain back on its feet. Securing finance for new businesses isn’t as easy as you think so long as seed capital provided by high street banks is limited and expensive. With lending rates so high, we believe the future of creating and supporting new business development lies with a nation of British ‘armchair dragons’ who are willing to invest their money and develop a personal portfolio of exciting investment opportunities. “
Small businesses can sign up to Crowdcube for free. Crowdcube receives a five percent success fee. If the target funds are not met, investors get their money back and no success fee is charged to the entrepreneur. Start-up ventures can register their business idea or company at www.crowdcube.com. People who invest more than £500 in an EIS registered business can also reduce their income tax liability by an amount equal to 30 percent of their share subscription through the Government’s new Enterprise Investment Scheme.
To date, Crowdcube has helped expanding business and new start-ups secure more than £280,000 in equity funding. Crowdcube has been inundated with approaching 500 businesses seeking to raise finance on Crowdcube. The site also now has 4450 members registered who are potential investors.