Press Release: Atherton Bikes
Atherton Bikes does everything fast. Whether that’s on the race track or designing and building their ground-breaking new bikes. It seems that fund-raising is no different. After just 3 hours on the Crowdcube platform they have already smashed their initial target of £600k
Rachel Atherton said “First of all a massive thanks to more than 5500 people who pre-registered an interest in our Crowdcube raise. And to more than 900 investors who have already pledged well over £750,000; we are overwhelmed by your support and your desire to be a part of the future .
In this video riders, business brains, designers and engineers talk about what motivated us to take this massive step, why we're approaching bike building in this new way (what’s so great about additive manufacturing), how we plan to develop the business… and how we’re planning to make it a huge success for our investors.”A bit about Crowdcube
Crowdcube is a leading equity-based investment platform that enables private investors to receive equity (shares) in return for their investment (our
minimum investment starts at around £11).
As we are raising finance at such an early stage of the business, there is huge potential for growth and as the company prospers value is created for all of our shareholders. This private round is only available to followers of mountain-biking and will be available for a limited time (we’re potentially talking hours rather than days) before it’s released to the general public. We are already overfunding but we are still accepting investment. The exact extent of the overfunding is to be decided once we have had time to take stock.
Anybody interested in investing should go to www.crowdcube.com/athertonbikes
Atherton Bikes is seeking around £600,000 ($775,000 USD) in further crowdfunding to help launch the next phase of its business.
The British brand will be using Crowdcube
to manage the fundraising. Unlike other crowdfunding platforms, Crowdcube doesn't offer rewards, products and merchandise to backers but instead a stake in the company. Atherton Bikes have not yet confirmed what percentage of equity will be released to investors.
Investors can join in the funding round from £11 and Atherton Bikes is projecting sales of 7,500 units in the next five years. The brand states that the investments will allow potential backers to participate in an ‘exploding bike market’ that has a predicted 6.1% Compound Annual Growth Rate (CAGR) up to 2025.
Atherton Bikes began life with some Angel Investors, including the Dragon's Den businessman Piers Linney, however some equity was held back as the brand wanted to leave some of the pie for mountain bikers and members of the public too. Dan Brown, CEO, said: “Our initial Angel investment round was so successful that we had to close it early to save enough shares for the mountain bike community, something we were all unanimous on. Now we’re aiming to raise a minimum of £600,000 through crowd-funding.on the Crowd Cube platform. Working with our first customers has given us the opportunity to perfect our processes and build the operational confidence to take the company to the next level."
The crowdfunding will apparently allow Atherton Bikes to bring its additive manufacturing into its own facility with the brand having previously manufactured its prototype frames at Renishaw near Bristol, UK
. The investment will expand the brand's capacity, allow it to launch website sales, and "increase the chances for customers to see, touch and feel our bikes and to develop the next models in the range".
Gee Atherton said “We believe that Atherton Bikes will disrupt the mountain bike industry. Bringing manufacturing back to the UK and establishing our business with a serious focus on sustainability is a huge bonus. We are working with some amazingly clever scientists and engineers from backgrounds in aerospace, Formula1 and NASA and our fundraising is being led by (Ex BBC Dragons’ Den) Piers Linney so your investment will be in very good hands.”
The crowdfunding has not yet begun but anyone interested can pre-register, here
. Investments of this nature carry risks to your capital. Please Invest Aware.Edited for clarity: An earlier version of this article suggested that the 6.1% CAGR figure referred specifically to Atherton Bikes and not the bike market as a whole.We apologise for any confusion.