Chilango's 'burrito bond' wraps up £2.16m

LAUNCHPAD: The Mexican restaurant chain's mini bond netted a record amount on crowd funding platform Crowdcube.

by Rachel Savage
Last Updated: 27 Apr 2015

It’s a tasty time for Mexican restaurant chain Chilango, which has wrapped up a record-breaking funding round of £2.16m with its ‘burrito bond’ on crowdfunding site Crowdcube.

The four-year bond offered 8% annual interest and two free burrito vouchers to the 749 investors, while the 102 people who put in more than £10,000 get a free weekly meal for the duration of the bond. Clearly they weren’t put off by the fact that so-called mini bonds can’t be traded on a secondary market and have no protection if a company goes bust.

The average investment was £2,900 and the largest £50,000. The seven-year-old company said it’s planning to open three new restaurants to add to the seven it already has in London.

The fundraising was the first mini bond issued on Crowdcube and beats the £1.97m raised by sustainable housing developer Hab Housing on the site last year (although Crowdcube itself raised £1.2m on its own site earlier this year - very meta.

But mini bonds aren’t all that new - while companies from Hotel Chocolate to King of Shaves and The Jockey Club have been offering perks like chocolate, razors and horse racing tickets alongside interest since the financial crisis, Wimbledon has been issuing ‘debentures’ since the 1920s. Anyone for a game of tennis...?

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