Boutique fitness chain 1Rebel has powered past its latest £1.5m crowdfunding target with more than eight days to spare, boosted by a sizeable vote of confidence from Pure Gym co-founder James Jack.
Jack, who was a founding director of the UK’s biggest gym chain and served as finance director from 2009 to 2012, bought a £300,000 stake in 1Rebel during its latest funding round on Crowdcube. In addition to voting rights, it is understood that Jack’s 2.6 per cent stake in the business will see him sit on the board as an observer.
“James Jack, co-founder of Pure Gym has become our largest single investor, which is a further stamp of approval by an industry expert,” 1Rebel co-founder James Balfour told
Health Club Management.
“If you
add our previous raise, then 1Rebel has successfully raised over £3m from the Crowdcube platform in just 15 months, with the initial investors more than doubling their money in that time frame.”
The successful completion of the latest funding round means 1Rebel now values itself at £11.5m. On the Crowdcube forum, some investors questioned the size of the valuation for a one-year-old business with two sites, however the surpassing of the £1.5m target with more than a week to spare suggests many more view it as a solid investment. As a result of the latest funding round, current investors’ stakes in the company will dilute proportionally to the amount raised.
Having launched two studios in London this year, 1Rebel plans to continue this rate of expansion over the next four years, with a view to reaching at least 10 sites in 2019. In addition to the crowdfunding round, 1Rebel also plans to issue a £1m convertible debt "in the near term" to raise a total of £2.5m. This money will be used for day-to-day costs of running current and future clubs, as well as to cover capital expenditure in opening new clubs – mainly equipment and leasehold improvements.
To read an interview with the team behind 1Rebel, from the February edition of
Health Club Management, click
here.
