WatchHouse has closed its crowdfunding round after raising £7.2m from 1,432 investors, exceeding its target of £1m.

The specialty coffee concept launched the campaign last month to support its ambitions for global expansion.

The company operates 18 sites across the UK and one in New York, with a pre-money valuation of £39m. It has four additional leases signed and two further heads of terms.

In addition to the 1,432 investors, WatchHouse is backed by venture capitalist Edition Capital, more than 40 angel investors, and family offices.

“Despite a cost of living crisis, we feel our 49% LFL revenue growth shows consumers value quality over price in coffee, demonstrating our product’s demand inelasticity,” according to the company’s crowdfunding page on Crowdcube.

“We believe coffee chains lack authenticity, ethics and quality. Our growth suggests that customers are seeking better, more genuine experiences, a need we feel the market is not meeting.

“WatchHouse aims to redefine coffee culture with exclusive specialty coffees and seasonal food in distinct spaces and online, offering a premium experience beyond traditional chains.”

Since its last crowdfunding raise in 2022, WatchHouse has opened eight sites, which also include its first outside London, in Bath.

The group has further increased top line revenue from £7.8m in 2022 to £16.6m (ARR 2024). Trading in Q1 2024 is up 120% compared to the same period in 2022.