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.’