Freddie’s Flowers grows mini-bond to £1m in just two weeks

Flower delivery business Freddie’s Flowers raises £1m through its minibond investment scheme in only two weeks

Flower delivery business Freddie’s Flowers has raised £1 million through its minibond investment scheme in only two weeks. 

The online subscription firm opened its Flower Bond to its 100,000 members on October 5, offering twice-yearly returns of either 7.5 per cent paid in boxes of flowers or 5 per cent in cash. 

The £1million is half the minimum sum the firm hopes to raise to fund its expansion, with a maximum target of £10million. This week it will open the scheme to the public, who must invest at least £2,500 into the bonds over a four-year fixed term. 

Blooming: The online subscription firm opened its Flower Bond to its 100,000 members on October 5

Hotel Chocolat ran a mini-bond scheme that raised £7.3million in chocolate bonds and repaid investors through its profits.

But other mini-bonds have failed, costing investors their savings. The Financial Conduct Authority introduced a ban on marketing ‘the most complex and opaque’ schemes to the public in January. 

Freddie’s Flowers is allowed to market its mini-bond as it is raising money to fund its own growth. It warns would-be investors that mini-bonds are high risk and are not covered by the Financial Services Compensation Scheme. 

Founder Freddie Garland said: ‘It’s 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.’