The high-end cycling clothing retailer Vulpine is to sell 10% of its business to customers through a £500,000 crowdfunding exercise.
The company, which was founded in 2012 by Nick Hussey, said it had turned down private equity investment in favour of offering its customers the chance to buy a share of the firm through Crowdcube.
Based in Wimbledon, the uber-trendy Vulpine has expanded quickly on the back of the huge growth in cycling over the past few years, and the rise of the so-called Mamil – middle-aged man in lycra – who has seemingly limitless amounts of money to spend on his hobby.
When Hussey launched the company, he said he aimed to produce “sartorial masterpieces that look great off the bike, with performance to match”. Vulpine said it has doubled its sales year-on-year and now offers 86 products across three separate ranges. Turnover in the third year was £996,000.
Hussey will use the £500,000 to fund international expansion into the US and Asia, particularly in Japan and South Korea. As part of that he wants to offer a “Made in Britain” range, which will be manufactured in Blackburn. Currently, 70% of the clothing is made in Hong Kong and 25% in Portugal.
Customers who are happy to spend the £229 he typically charges for a waterproof jacket will be offered a range of incentives to invest in the company.
Those putting in £500 get a 10% discount among other benefits. Those prepared to stump up £50,000 will be entitled to access to management, a full cycling outfit and 40% discount on future purchases.
The investment launched on Sunday and has already raised more than £180,000.
Earlier this year Vulpine beat seven competitors to form a partnership with cycling legend Sir Chris Hoy.
Hussey said: “Cycling is growing as a lifestyle choice for so many people and we are determined to show them just how good stylish cycle clothing can be. We’re committed to build on our success, we believe in Vulpine, and we love hearing that so many other people do too.”
Vulpine is just one of a number of cycling businesses that has cashed in on the phenomenal rise in cycling in recent years. In May, Evans Cycles was sold in a deal thought to value the retailer at £100m. The seller, Active Private Equity, bought its controlling interest in the family-owned company for £35m in 2008.
