Surrey cycling brand Parcours Velo secures £100,000 loan to fund expansion
A Surrey-based performance cycling wheel brand is the latest company to receive finance through the Enterprise M3 Funding Escalator. The £100,000 expansion loan will fund further product development, marketing and growth of the team.
From its Puttenham workshop, Parcours Velo designs and retails its range of wheels with cutting-edge aerodynamic technology. Since its launch in 2016, the company has built a solid reputation for a premium product at an affordable price point, with a number of top cyclists and triathletes winning races and championships riding on Parcours wheelsets.
As a small business among a myriad of large competitors, ongoing research and development is key to Parcours remaining at the forefront of technical improvements to maintain its reputation and underpin its future growth.
A research partnership with Nottingham Trent University Sports Engineering dept has already resulted in the launch of a unique rim technology following Parcours’ #thinkwider project and design philosophy. This involved fitting bikes with ultrasonic sensors that were used to run tests in real-world wind conditions over a 12-month period. Data was collected via smartphones and used to inform and drive product development.
Having seen sales increase by 70% in the last year, the business now faces an opportunity to expand in a number of international markets.
Parcours Founder and CEO Dov Tate commented: “As a small and agile business, we have been able to react quickly to the growth in cycling that has taken place during the pandemic. Unlike many of our larger competitors, we haven’t been so significantly impacted by significant supply chain issues and are still delivering to our direct sales consumers as well as our retailers and distributors.
“We are now looking to expand our presence in Europe, North America and Asia, and this Enterprise M3 loan means we can get ahead of the competition in taking advantage of the wider market opportunities.”
Enterprise M3 Funding Escalator is managed by The FSE Group on behalf of Enterprise M3 Local Enterprise Partnership. Cheryl Weeks, The FSE Group’s Head of Funds, South East added: “Over the past five years, Dov has developed a range of technology-driven, high-quality products which, alongside a pricing model that is difficult for larger competitors to match without disrupting their distribution model, has helped him to establish a robust, niche business with strong relationships across the sector.
“With the pandemic-led cycling boom showing no signs of slowing, the market opportunity is considerable and we look forward to working with Dov and his team as they drive the growth of the business.”