BullionByPost turns to crowdfunding to raise £2.2m
BIRMINGHAM-based BullionByPost has launched a crowdfunding campaign to raise £2.2m to support its continued growth.
The company, the UK’s largest online physical gold and silver bullion dealer selling bars and coins to private investors, said the move represented one of the biggest equity fundraisings of its kind.
Founded by entrepreneur Rob Halliday-Stein in 2009, BullionByPost plans to expand into a number of overseas markets and build on its market leading position in the UK. The funds raised will be used predominantly to finance the stock and working capital required for expansion.
The company, which last year saw turnover hit almost £100m, said it did not fit the traditional business demographic for crowdfunding, more often the preserve of young start-ups.
It has more than 70,000 registered customer accounts, has sold £300m of precious metal and processed over 100,000 orders.
Halliday-Stein decided to raise the money through crowdfunding in order to meet the demand of increasing numbers of customers asking about investment opportunities within the business.
“We want our customers to be our investors and our investors to be our customers, and crowdfunding seemed the most cost effective way for us to raise funds and to give customers the opportunity to get shares in the business at as little as £500,” he said.
Anthony Smiley, Financial Director of BullionByPost, added: “We looked at range of options for funding our expansion, but crowdfunding stood out. It’s a natural fit and very much in tune with the ethos of the business, and we’ve always been about offering investment opportunities to everyone.”
The company plans to expand its online business across Europe, starting with France and Spain in early 2015, with the aim of European sales exceeding the domestic market within three years.
“We already have a profitable business, but we are looking for this additional capital to help accelerate our growth, and deliver on these opportunities we’ve identified, to become the most respected and successful online precious metals business in Europe,” said Halliday-Stein.
The funding is being handled by Crowdcube. Law firm Mishcon de Reya is overseeing the process.
