Temple Cycles launches bond-based investment drive

Bristol independent bike brand Temple Cycles has today launched a £625,000 bond offer on the Triodos Crowdfunding platform to grow its business and to fund investment in its new eBike activities.

Formed in 2014, Temple Cycles has notched over 15,000 customers across 30 countries and it’s upon this foundation that the brand is looking to achieve its next stage of development, in the process offering backers a 6% annual return for seven years. The bond proceeds will allow the company to refine and develop its range of eBikes, to complement its conventional bikes.

Built in Bristol, the brand has hung its hat on a built-to-last, lifetime warranty product that is easy to fix and maintain. “This move is designed to challenge the throwaway culture associated with many consumer brands, including within the cycling industry,” says the brand, adding “Temple Cycles uses traditional steel as an alternative to more conventional materials such as carbon fibre, which are harder to recycle, have a short product life cycle and a high carbon footprint. The steel comes from 70% recycled sources and can easily be recycled in turn at the end of its life.”

Covid-19’s afterglow on bike industry demand gave Temple a boost and the pitch to investors is that the brand can go further to tap into an electric bike market that is growing at an impressive clip in Europe and the USA, in particular. In the UK, bike shops have allocated the greatest portion of forward investment to the carriage of electric bike products in store, as found in CyclingIndustry.News’ annual market research.

Investment is available from £50 and the bond is eligible to held in a Triodos Innovative Finance ISA. The £625,000, seven-year bond will pay 6% per year interest. As with all investments, interest and repayment of capital are not guaranteed. As with all ISAs, there are eligibility criteria and you receive interest tax-free. ISA eligibility does not guarantee returns or protect consumers from losing their money.

Matthew Mears, chief executive of Temple Cycles, commented: “The events of the past two years have actually enabled the cycling industry to flourish and we believe this will be a lasting legacy. As the UK seeks to decarbonise its transport system, active travel and e-mobility now have strategic importance which will help strengthen the growth opportunities within the cycling industry, as too will the continuing national focus on our individual wellbeing.”

Jeremy Pannell, senior corporate finance manager at Triodos Bank UK, added: “As a passionate cyclist, I have experienced first-hand the physical and mental health benefits of cycling. It has been a joy to see cycling become a hugely popular past time and I’m sure that many keen cyclists will be interested in supporting an independent retailer through this new bond offer.

“As a bank we have made public commitments to achieving net zero by 2035. Cycling plays an important role in the national decarbonisation agenda and we are really pleased to be helping Temple Cycles raise the finance they need to grow.”