Flower supplier Freddie’s Flowers raises £ 1 million in just two weeks through its mini-union investment plan
Flower supplier Freddie’s Flowers has raised £ 1 million in just two weeks through its mini-union investment plan.
The online subscription firm opened its Flower Bond on Oct. 5 to its 100,000 members, offering a return of 7.5 percent paid in boxes of flowers or 5 percent in cash twice a year.
The £ 1 million is half of the minimum amount the company hopes to raise to fund its expansion, with a maximum target of £ 10 million. This week, the scheme opens to the public, which must invest at least £ 2,500 in the bonds over a fixed term of four years.
Blooming: The online subscription company opened its Flower Bond to its 100,000 members on October 5
Hotel Chocolat operated a mini bond scheme that raised £ 7.3 million in chocolate bonds and paid back investors through the profits.
But other mini-bonds have failed, costing investors their savings. The Financial Conduct Authority in January banned the marketing of ‘the most complex and opaque’ programs to the public.
Freddie’s Flowers is allowed to market its mini bond because it raises money to finance its own growth. It warns potential investors that mini-bonds are high risk and are not covered by the Financial Services Compensation Scheme.
Founder Freddie Garland said: “It is great to see such a good response to our Flower Bond already. I want to thank all our customers and new investors for their support. ‘