The owner of some of London’s best loved bars, The Rushmore Group, satisfies its thirst for expansion with record crowdfunding investment.
The Rushmore Group, owner of three members’ clubs in London, today secured £1 million investment from 143 investors to fund the development of an exciting new venue in the heart of London, early next year. The investment, raised in only four weeks through the equity crowdfunding website Crowdcube, sets a new record for the largest amount of money raised using a crowdfunding website.
The Rushmore Group was founded in 2001 and is the well-established owner and operator of three members’ bars and clubs in London – Milk & Honey and The Player in Soho and Danger of Death on Brick Lane. The Group raised the growth finance through the Crowdcube web-based crowdfunding platform in return for 10 per cent equity.
Jonathan Downey, founder and director of The Rushmore Group said:
“We are delighted to have successfully reached our £1 million target on Crowdcube. Crowdcube is a powerful new way to raise business finance and this investment wouldn’t have been possible without its innovative platform. The Group’s immediate aim is now the acquisition, refurbishment and launch of a new site in Soho, London.”
The investment sets a new record for the largest amount of money raised using a crowdfunding website anywhere in the World. The previous record set by a project on US-based crowdfunding giant Kickstarter, which raised $942,578, was easily beaten by The Rushmore Group’s £1 million ($1,579,550) raise on Crowdcube.
Crowdcube is the first crowdfunding website to enable the general public to invest and receive shares in UK-based companies that register on the site to raise finance. Instead of competing for limited business angel or venture capital funding or hard to get and expensive bank finance, small businesses use Crowdcube as a platform to connect with a nation of Armchair Dragons’ – ordinary people who provide investment in exchange for equity.
The food menu at Milk & Honey is a very simple affair:
You can download their Drink Menu by clicking HERE.
Bartender Durham Atkinson of Milk & Honey, SoHo, London mixes a new cocktail drink
Darren Westlake, co-founder and CEO of Crowdcube said: “Raising £1 million for a single business on Crowdcube is a fantastic achievement but not a surprise to us. We firmly believe that raising finance using crowdfunding will transform the way businesses raise capital in the future. With over £1.4 million successfully raised on Crowdcube for British businesses since July 2011, we are bucking the trend and proving that there is now an alternative way to raise business finance in the UK.”
The Rushmore Group becomes the sixth deal to be completed on Crowdcube since July 2011 with successful investments now totalling over £1.4 million. The website has approaching 6,000 registered members who are seeking investment opportunities.
Small businesses and investors can sign up to Crowdcube for free. Entrepreneurs can register their business idea or company at www.crowdcube.com and only pay a fee when they successfully hit their investment target.
COMMENTARY: 1.0 million British pounds at the current rate of exchange is $$1,579,550. Damn impressive. Jolly good ole chap. However, surely there could've been far better businesses to invest your money into than a members-only speakeasy. There were 143 individual investors, which averages $15,196 each. I won't question the wisdom of those individuals, but I suspect this is a business deduction.
The Crowdcube Pitch
Jonathan Downey's pitch for his new speakeasy was very simple:
"The Rushmore Group is the well-established owner and operator of three members' bars and clubs in London and is seeking £1 million to fund future expansion plans."
His Crowdcube pitch for funding ended November 21, 2011. His goal was to raise 1 million pounds and offer 10% equity in the new establishment. There a total of 143 investors and the funding was successful.
The House Rules and Food & Drinks
There are some wishy-washy "house rules" (see below) at Milk & Honey, but the jolly ole English can be very formal (and rowdy at times).
The food at both Milk & Honey's is unspectacular and English, but they do have oysters at 25 pounds for 12. Prices are low-to-mid range. Check the menu above. This is a speakeasy and drinks dominate. Checkout their Drinks menu (see above link).
How To Become A Member
Full International Membership includes access to all of The Rushmore Groups establishments in London and U.S.:
- Milk & Honey, London
- The Player in Soho
- The East Room (Back Soon)
- The Clubhouse in Chamonix
- The Starland Social Club
- Danger of Death
- Milk & Honey, New York
- Every new club they open
There are several Rushmore membership plans:
- International Membership (every club) /£400 + £50 Registration Fee
- Joint International Membership (every club / must live at same address) /£700 + £50 Registration Fee
- Five Year Membership (every club) /£1500 + £50 Registration Fee
- Joint Five Year Membership (every club / must live at same address) /£2500 + £50 Registration Fee
- Local Soho Membership (Milk & Honey and The Player only) /£250 + £50 Registration Fee
- Generation Y International Membership (every club)* /£250 + £30 Registration Fee
- Generation Y Local Soho Membership* (Milk & Honey and The Player only) /£150 + £30 Registration Fee
Here are the membership dues to join The Starland Social Club and Danger of Death:
- The Starland Social Club Membership only /£150 + £30 Registration Fee
- Danger of Death Membership only /£100 + £30 Registration Fee
Members may bring up to three guests without a reservation and more if you call ahead and we have space. Membership is by invitation only. Completion of an application form and payment of the registration fee does not guarantee membership.
- No name-dropping, no star fucking.
- No hooting, hollering, shouting or other loud behavior.
- No fighting, play fighting, no talking about fighting.
- Gentlemen will remove their hats. Hooks are provided.
- Gentlemen will not introduce themselves to ladies. Ladies, feel free to start a conversation or ask the bartender to introduce you. If a man you don't know speaks to you, please lift your chin slightly and ignore him.
- Do not linger outside the front door.
- Do not bring anyone unless you would leave that person alone in your home. You are responsible for the behavior of your guests.
- Exit the bar briskly and silently. People are trying to sleep across the street. Please make all your travel plans and say all farewells before leaving the bar.
Milk & Honey is considered one of the Top Bars of the World, the bartenders are considered some of the best, and they have excellent reviews in Timeout and Yelp.
Courtesy of an article dated November 22, 2011 appearing in the Crowdcube blog