Notes, the five-strong London-based coffee shop and wine bar concept, which last month launched a fundraising drive on Crowdcube, has lowered its valuation by £1.5m.
The company was looking to raise £600,000 in return for 7.5% of its equity, which valued the group at £8m, but after listening to feedback the founders have lowered the evaluation and lower the A share threshold to £5,000.
At the same time, the group has said it is in advanced discussions on three new sites and have been informed that it is the landlords’ preferred operators on all of them.
The company said: “Over the last few days we have been thinking about valuation and wanted to show that we have been listening. Although we still stand behind our original valuation, we have spoken with Crowdcube and jointly decided to lower our valuation by £1.5m.
“Our expected returns on exit, assuming the business plan, would increase to 5x which we believe to be a very attractive return, especially alongside the tax benefits from EIS relief (up to 30% rebate on income tax and capital gains relief). We are really excited to welcome all of you into Notes’ journey, and feel with your support as brand ambassadors and investors that Notes will go from strength to strength.
Also we have decided to lower the A share threshold to £5,000, making them more accessible for investors.”
The three new sites are as follows; a site at the exit of one of London’s busiest stations; a site in one of the “most iconic buildings” in the city and a site at the foot of a busy office block in the city surrounded by many other offices.”
The group said: “All of the above would be amazing Notes sites, and the fact that we are being chosen ahead of competitors indicates the strength of the brand, and the achievability of the business plan.”
