Clear Books to raise £840,000 from its customers in ‘Do it Yourself IPO’
Cloud-based software firm turns to public in share sale to save on listing fees
Cloud-based accounting software provider Clear Books has announced the sale of £839,913 worth of shares to the public, through its own equity-based online crowdfunding tool.
Founded in 2008 by Tim Fouracre, Clear Books provides accounting, payroll and HR software targeted at small businesses and sole traders and managed remotely over cloud servers.
The £840,000 target has been set following Clear Books’ recent re-registering as a public limited company in preparation for the sale, with thousands of customers pledging a total of around £2m in formal expressions of interest.
Clear Books claims selling the shares through its own platform will save on the listing fees charged by mainstream crowdfunding sites, which is normally around 5% of the total money raised.
In contrast, the company estimates that less than 1% of the money raised through its own method will be lost to fees.
Customers had already pledged £115,853 at the time of writing, with 36 days left to invest.
The share sale follows Brewdog’s recent similar ‘Equity for Punks’ initiative, in which the Scottish craft beer brewer raised £3m in two months selling shares directly to the general public.
Clear Books has also signalled its intention to offer its fundraising tool as a standalone product to customers following the conclusion of the share sale.
Tim Fouracre, founder of Clear Books, said: “We have always developed internal tools to run our own business more efficiently and then made this software available to our customers to benefit from too. We have done this with accounting, payroll, human resources and document management.
“So helping our small business customers raise funds is an exciting opportunity to help small businesses in the UK grow faster.”