This makes it the biggest amount ever raised using an equity crowdfunding platform. Having extended its pitch after meeting its original £1 million target in 46 days, it overfunded by 90 per cent, raising the total of £1,904,540 and Crowdcube has now helped over 70 British businesses to raise a total of £13.5 million.
A total of 649 people are new shareholders in Hab Housing, making investments ranging from £100 to £150,000. The company’s vision is to build beautiful and environmentally-friendly housing at a price that most people can afford. It will use the money raised to develop its business, and take advantage of opportunities offered by the rapidly-growing UK market for custom build homes.
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.