FSP VC team advising EM3 on investment into fast growing custom bike brand Spoon
Spoon Group, owner of Spoon Customs, Gun Control Custom Paint which was created through a merger with WyndyMilla in 2019, has secured a £300,000 equity investment from the Enterprise M3 Growth Fund, as part of a £740,000 funding round valuing the fast-growing performance bike company at £3.7million.
The funding round was led by The FSE Group who manage the EM3 Growth Fund on behalf of Enterprise M3 Local Enterprise Partnership and included investment from existing and new private investors. The round will be used to expand the firm’s operations, by recruiting new team members, solidifying its sales, and marketing operation and bringing certain operations in-house.
The team at Field Seymour Parkes was led by partner and head private equity and venture capital Penelope Garden with assistance from corporate partner Rachael Maunder.
Spoon Group, run by Andy Carr as CEO and Chris Houghton as non-executive director, was founded through a merger of Spoon Customs and Wyndymilla, an existing portfolio company of the EM3 Funding Escalator.
Spoon Group specialise in bespoke bikes, designed for the rider’s physiology and the type of riding the customer wants to do, delivered with the highest standards of fit, fabrication and finish. The bikes are precision built with carbon fibre or steel frames, designed in house, then fabricated one at a time by hand, before being finished to the highest possible standard at their base in Surrey.
Andy Carr, Chief Executive Officer of Spoon Group explains: “It is great to be working alongside Paul and the EM3 team. Cyclists now know they can get more from their equipment if it’s designed around their body, for the specific riding they do. Our recent reviews prove we can compete on performance terms with any of the big brands too and this investment further demonstrates how the market is shifting away from mass produced equipment, in favour of specialists like us who can invest in product, service and personalisation to deliver and a better bike that will meet a customer’s specific lifestyle and performance needs.”
Paul Lyristis, Investment Manager, South East for The FSE Group, commented: “We were impressed by Spoon’s track record and the expertise of the senior management team and investors. The fund has supported the business since 2016, and it is encouraging to see the growth of the business with great products that are receiving increasing recognition. We are delighted to be able to invest in Spoon and look forward to working with Andy, Chris and the team to ensure they reach their goals for growth.”
Sue Littlemore, Joint Managing Director, Enterprise M3 LEP, commented: “We are delighted to be supporting a successful company that combines high quality custom focused design, for a mode of transport that is environmentally friendly. We wish Spoon Group well with its expansion and recruitment plans.”
The Enterprise M3 Funding Escalator is £10million initiative funded by Enterprise M3 LEP. The escalator, which includes an expansion loan scheme, a trade finance loan scheme and an equity growth fund, provides eligible companies with loans and equity funding between £50,000 and £300,000 for activities that will deliver high-growth and employment opportunities across the EM3 area.