Free cycle scheme gets investors in a spin with £410,000 crowdfunding round
Buzzbike will use Crowdcube backing to develop tech-based scheme which offers free bikes to Londoners through brand partnerships
A start-up which has created a free cycle scheme for Londoners, Buzzbike, has raised £410,000 from investors on equity-based crowdfunding site Crowdcube.
270 people backed the round – with one investor funding £50,000 – in exchange for a share of 28.08% equity.
Set to “hit the streets” this September, Buzzbike is able to offer high-quality single speed bikes, made by the inventors of the Mini Cooper, for free and for 24/7 use with free accessories, insurance and servicing.
Brands, starting with Braintree, will fund Buzzbike by paying for sponsorship of the bikes and having their messages promoted in targeted areas of the city (riders sign up using their home and work postcodes).
Users of the cycle scheme will be required to ride to work an average of 12 days a month and street park; Buzzbike will then track and report this through an app that automatically connects to the user’s phone with their ‘Buzzbike’. Riders do have to pay a £100 deposit but this is refunded once the bike is returned at the end of the agreement.
The £400,000 will go towards expanding the number of bikes available in the scheme and will also support development of the Buzzbike app. Buzzbike will use the £400,000 to:
Buzzbike co-founder, Tom Hares, said of his crowdfunding experience: “We’ve had investments from an amazing range of people from influential and high profile members of the advertising industry to our own rider community.
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“The increasing congestion and pollution in London paired with the rise of cycling in London made this an exciting and viable business opportunity. Brands are under more and more pressure to engage customers in new and meaningful ways and bikes represent a significant gap in the £1bn UK outdoor advertising market, not just in London but globally.”