Crowdcube, the UK's largest equity crowdfunding website, has launched a new mini bond option which is targeted at established businesses seeking £1m of funding.
The use of mini bonds has been pioneered by the likes of Hotel Chocolat, King of Shaves and John Lewis. Businesses sell mini-bonds to investors who then receive interest of a certain cent per annum until the bond expires, at which point the original investment is repaid in full. The bonds are unsecured non-convertible and non-transferable – which means they cannot be traded on a bond market. Capita Registrars estimates the UK mini-bond market will be worth £8bn by 2017, from just £90m in 2012.