14 October 2013
HAB Housing, founded in 2007 by Grand Designs’ presenter Kevin McCloud, has successfully raised £1,943,540 on the equity crowdfunding platform Crowdcube. This makes it the most ever secured using an equity crowdfunding platform. When the company originally ‘pitched’ for finance its aim was to secure £1m.
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The £1.9m raised is the largest amount generated using an online equity crowdfunding platform – a process where people invest in a business in return for a share in the company. This differs from more well-known forms of crowdfunding like Kickstarter, where a community of people donate money online to back individual projects in return for prizes or products.
At a celebration party held in Bristol on Friday evening McCloud (pictured, above right) thanked his 649 investors. And the Mayor of Bristol, George Ferguson (pictured, inset, left), announced that he was delighted the company had decided to establish its new headquarters in the city.
The new shareholders of HAB invested between £100 and £150,000 each. McCloud himself is understood to have invested a further £1m of his own money in the company too.
HAB’s vision is to build beautiful and environmentally-friendly housing at a price that most people can afford. It will use the cash raised to develop its business, and take advantage of opportunities offered by the rapidly-growing UK market for custom build homes.
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Its initial custom build projects are expected to be on site in a few months, and the first homes should be ready for occupation before the end of 2014. The publicity generated by the funding initiative is understood to have resulted in many approaches from landowners keen to work with the company.
As well as now owning just over a quarter of the business, investors have been offered preferential terms on a HAB custom build home and the company aims to offer investors a 5 per cent dividend by the end of 2016.
McCloud said: “We find it gratifying that so many people have joined HAB’s merry band of shareholders. From day one, HAB has been fueled 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.”
