{"id":134,"date":"2016-02-26T05:11:41","date_gmt":"2016-02-26T05:11:41","guid":{"rendered":"http:\/\/blogs.isb.edu\/centre-for-family-enterprise\/?p=134"},"modified":"2025-12-31T09:44:32","modified_gmt":"2025-12-31T09:44:32","slug":"the-use-of-mini-bonds-to-raise-capital-for-family-businesses","status":"publish","type":"post","link":"https:\/\/blogs.isb.edu\/centre-for-family-enterprise\/2016\/02\/26\/the-use-of-mini-bonds-to-raise-capital-for-family-businesses\/","title":{"rendered":"The Use Of Mini-Bonds To Raise Capital For Family Businesses"},"content":{"rendered":"<p>Family businesses often face a dearth of long term capital from established financial institutions. In an effort to meet the growing need for capital many innovative financial products are being developed around the world by family businesses. Mini-bonds or crowdlending is one such product, fast gaining popularity in Europe.<\/p>\n<p>&nbsp;<\/p>\n<p>Like conventional bonds, mini-bonds usually have fixed maturities of around three to five years, with investors receiving interest twice annually. They don\u2019t face the same regulatory listing requirements as conventional bonds, so they\u2019re easier to issue. But investors don\u2019t get the same comprehensive information \u2013 or protections \u2013 on their investment. However, they are increasingly becoming popular due to their uniqueness as a fixed income investment, comparatively higher interest rates and fun added perks. They are non-tradable, hence for investors &#8211; the cash is locked in; while for issuers, this translates into retaining control.<\/p>\n<p>In 2010, Hotel Chocolat, a British luxury chocolate chain, raised \u00a34.2 million from mini bonds. Its returns included receiving a box of chocolates every two months. Last year it launched its second \u2018chocolate bond\u2019, offering annual returns of 7.25% in the form of in-store credit, or a monthly box of chocolates.<\/p>\n<p>Earlier this year family-owned Scottish craft beer brewer Innis &amp; Gunn, launched \u00a33 million in mini-bonds to build a brewery. Their \u201cBeerBond\u201d aims to pay 7.25% interest each year, with investors\u2019 initial investment returned on maturity after four years. Bondholders will also receive a 12.5% discount on online beer purchases.<\/p>\n<p>Many other companies, including John Lewis, King of Shaves, Caxton FX, Ecotricity have also used this type of mini-bond finance raising, which connects customers with companies.<\/p>\n<p><i>Source: CampdenFB (A%20capital%20idea_%20Funding%20the%20family%20enterprise%20_%20Campden%20FB.html)<\/i><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Family businesses often face a dearth of long term capital from established financial institutions. In an effort to meet the growing need for capital many innovative financial products are being developed around the world by family businesses. Mini-bonds or crowdlending is one such product, fast gaining popularity in Europe. &nbsp; Like conventional bonds, mini-bonds usually [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_uf_show_specific_survey":0,"_uf_disable_surveys":false},"categories":[2],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>The Use Of Mini-Bonds To Raise Capital For Family Businesses - Thomas Schmidheiny Centre for Family Enterprise<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/blogs.isb.edu\/centre-for-family-enterprise\/2016\/02\/26\/the-use-of-mini-bonds-to-raise-capital-for-family-businesses\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Use Of Mini-Bonds To Raise Capital For Family Businesses - Thomas Schmidheiny Centre for Family Enterprise\" \/>\n<meta property=\"og:description\" content=\"Family businesses often face a dearth of long term capital from established financial institutions. In an effort to meet the growing need for capital many innovative financial products are being developed around the world by family businesses. Mini-bonds or crowdlending is one such product, fast gaining popularity in Europe. &nbsp; Like conventional bonds, mini-bonds usually [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/blogs.isb.edu\/centre-for-family-enterprise\/2016\/02\/26\/the-use-of-mini-bonds-to-raise-capital-for-family-businesses\/\" \/>\n<meta property=\"og:site_name\" content=\"Thomas Schmidheiny Centre for Family Enterprise\" \/>\n<meta property=\"article:published_time\" content=\"2016-02-26T05:11:41+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-12-31T09:44:32+00:00\" \/>\n<meta name=\"author\" content=\"Editorial team\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Editorial team\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/blogs.isb.edu\/centre-for-family-enterprise\/2016\/02\/26\/the-use-of-mini-bonds-to-raise-capital-for-family-businesses\/\",\"url\":\"https:\/\/blogs.isb.edu\/centre-for-family-enterprise\/2016\/02\/26\/the-use-of-mini-bonds-to-raise-capital-for-family-businesses\/\",\"name\":\"The Use Of Mini-Bonds To Raise Capital For Family Businesses - Thomas Schmidheiny Centre for Family Enterprise\",\"isPartOf\":{\"@id\":\"https:\/\/blogs.isb.edu\/centre-for-family-enterprise\/#website\"},\"datePublished\":\"2016-02-26T05:11:41+00:00\",\"dateModified\":\"2025-12-31T09:44:32+00:00\",\"author\":{\"@id\":\"https:\/\/blogs.isb.edu\/centre-for-family-enterprise\/#\/schema\/person\/36b0b1fce0228ee6b0380926861571cc\"},\"breadcrumb\":{\"@id\":\"https:\/\/blogs.isb.edu\/centre-for-family-enterprise\/2016\/02\/26\/the-use-of-mini-bonds-to-raise-capital-for-family-businesses\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/blogs.isb.edu\/centre-for-family-enterprise\/2016\/02\/26\/the-use-of-mini-bonds-to-raise-capital-for-family-businesses\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/blogs.isb.edu\/centre-for-family-enterprise\/2016\/02\/26\/the-use-of-mini-bonds-to-raise-capital-for-family-businesses\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/blogs.isb.edu\/centre-for-family-enterprise\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"The Use Of Mini-Bonds To Raise Capital For Family Businesses\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/blogs.isb.edu\/centre-for-family-enterprise\/#website\",\"url\":\"https:\/\/blogs.isb.edu\/centre-for-family-enterprise\/\",\"name\":\"Thomas Schmidheiny Centre for Family Enterprise\",\"description\":\"Creating value for families and businesses through research and innovation\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/blogs.isb.edu\/centre-for-family-enterprise\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/blogs.isb.edu\/centre-for-family-enterprise\/#\/schema\/person\/36b0b1fce0228ee6b0380926861571cc\",\"name\":\"Editorial team\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/blogs.isb.edu\/centre-for-family-enterprise\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/20fb226145337a9ce5d93494a13b2d55?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/20fb226145337a9ce5d93494a13b2d55?s=96&d=mm&r=g\",\"caption\":\"Editorial team\"},\"sameAs\":[\"https:\/\/blogs.isb.edu\"],\"url\":\"https:\/\/blogs.isb.edu\/centre-for-family-enterprise\/author\/isb_blog_user_admin\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"The Use Of Mini-Bonds To Raise Capital For Family Businesses - Thomas Schmidheiny Centre for Family Enterprise","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/blogs.isb.edu\/centre-for-family-enterprise\/2016\/02\/26\/the-use-of-mini-bonds-to-raise-capital-for-family-businesses\/","og_locale":"en_US","og_type":"article","og_title":"The Use Of Mini-Bonds To Raise Capital For Family Businesses - Thomas Schmidheiny Centre for Family Enterprise","og_description":"Family businesses often face a dearth of long term capital from established financial institutions. 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