Funding boost for ethical retailer
Article Date: Oct 07 2008EthicalSuperstore.com, a Newcastle-based retailer of fair trade and ethical goods, has received £1 million in a third round of venture capital (VC) financing. The funding round, which brings total investment in the company to more than £2 million, was led by existing backer NorthStar Equity Investors (NSEI).
NSEI invested £550,000 from its co-investment fund, with a further £200,000 coming from angel investors as well as £250,000 from Bristol-based Rathbone Greenbank Investments.
The funding has enabled Ethical Superstore to move its 30 staff from a combined office and warehouse space of 4,500 square feet to a new facility of 25,000 square feet.
Ian Richards, a portfolio manager at NSEI, comments, ‘We’ve seen the company quadruple in size, increasing its turnover from £245,000 in 2006 to £2 million in 2008. We have every confidence in its future success.’
Ethicalsuperstore.com director Vic Morgan says the business aims to increase turnover to £40 million within the next four years.
NSEI’s co-investment fund has assets of £23 million and specialises in technology investments between £100,000 and £1.5 million in the North East of England. The sole investor in the fund is the European Regional Development Fund.
