We're excited to announce that we will be opening our Series B Funding Round later this year on Crowdcube, to bring assembly in-house and grow the business further.
Since we successfully crowdfunded 3 years ago, we've more than doubled our revenue, increased production runs from two to four per year, welcomed more than 5,000 new customers and sold more than 7,000 watches. We’ve also relocated to a larger, purpose-built space.
We're looking to raise £500,000 through our Series B round and we’d love you to participate. With the investment, we’re planning to bring assembly, servicing, repairs and elements of manufacturing in-house - creating a destination for our customers, where they can come and see their watch being made. We’ll also be investing in and broadening our marketing and advertising activities, as well as expanding the team to deliver our strategy.
If you have any questions regarding our Series B Funding Round please don't hesitate to get in touch. Alternatively, please see our FAQs detailed below.
What is a Series B Funding Round?
A Series B Funding Round is simply the second stage of funding that includes venture capitalists and private equity as potential investors.
When will your Series B Funding Round open?
Our Series B Funding Round will be going live in October and you, our existing shareholders, will be the first to know. In fact, we will be offering all existing shareholders an exclusive private phase.
What are Series B shares?
Series B financing is the second round of funding for a company that has met certain milestones and is past the initial start-up stage. Series B investors usually pay a higher share price for investing in the company than Series A investors, due to the increased size and valuation of the company.
Do I need to invest?
Absolutely not - this second funding round will not impact on the number of shares that you currently own; however, all existing shareholders are entitled to pre-emption rights. We'll be giving current shareholders access to the Series B Funding Round during a private phase, prior to opening the round to the public.
What are pre-emption rights?
Pre-emption rights allow existing shareholders to top up their investment should they wish, to maintain their percentage shareholding in the business.
What if I choose not to invest?
Dilution occurs where a company issues additional shares, and an existing investor does not purchase/receive more shares to maintain their holding. For example, if two people own 50 shares each in a company (each holding 50% of the issued share capital), and the company issues/sells 50 new shares, their holding would be diluted to 33.3%.
What is the impact of share dilution?
The dilution of shares may seem like a negative prospect for shareholders as it can decrease their equity and percentage of shares held in the company. However, when a start-up company commences a second round of investment, it usually signifies that the company has the capacity to expand and embark upon new ventures. The cash injection from newly issued shares and subsequent growth in the company is likely to increase the value of the existing shareholders’ shares.
How can I make a return on my investment?
There are several ways to realise a return on your investment: the company grows to a point where it lists on the stock market (“going public”), or is bought by a larger company, or the company management buys back equity from investors. At that point, you may be able to sell your shares and make a profit. You can also express interest in selling any shares in the company in your portfolio through Cubex, Crowdcube's secondary market, potentially realising the value of your investment without having to wait for one of the above liquidity events.