Taylor St Baristas has revealed its crowd-sourced “coffee bond” has raised over £500,000 from 220 investors in under three weeks.

It means the company has reached the minimum amount needed to bank the proceeds from the fundraising drive.

Chief executive Richard Shaer said: “This is a significant milestone for the Coffee Bond. It’s incredibly humbling to see so many people – investors and customers alike – coming together to help make Taylor St one of the world’s leading specialty coffee houses.”

The initiative – the first in the UK – allows bondholders to choose to have their coupon paid in either cash – at a rate of 8% per annum – or in the form of store credit at a rate of 12% per annum.

“The cash coupon has been the favourite option for many of our investors, with 90% taking up this option,” Shaer said. “I think this reflects the very competitive interest rate – which is significantly higher than anything offered by the high street banks.”

On the risks involved in the debt compared to traditional high street lending, Shaer said:  “Taylor St is no new-kid-on-the-block. We’re not a start-up with all its associated risks. We’re a business that’s been around for over eight years and is one of the strongest premium coffee brands in the UK with annual revenues exceeding £3.5m.”

Taylor St plans to double the size of its business in the next two years, with bond proceeds being used to open three to four shops in 2015, and a further four to six shops in 2016.