Crowdcube closes “world record” £1.2m through its own site in just 16 minutes
Crowdfunding success completes £5m Series B round backed by Balderton Capital
Equity-based crowdfunding platform Crowdcube, featured in the Startups 100 2013 and Startups Cup, has today closed its own bid to raise £1.2m after reaching its target amount in just 16 minutes with investment from 141 crowd investors.
Said to set a “world record” for the fastest equity crowdfunding raise, the investment completes the crowdfunding site’s £5m Series B funding round which had already attracted £3.8m from venture capital firm Balderton Capital.
The deal follows two other successful seed and Series A rounds which the company hosted on its own website; raising £320,000 in 2011 and £1.5m in 2013 over three days.
Launched in February 2011 by Darren Westlake and 2013 Young Gun Luke Lang, Exeter-based Crowdcube allows “ordinary people” to invest in “innovative” businesses in return for direct equity, and has facilitated over £32m for over 130 start-ups and growing businesses to date.
It intends to use its latest funding to double its staff numbers to 50, open new offices in London and Scotland, and to expand its operations internationally having already signed up Brazil, Sweden, Dubai, Poland, Italy, Spain, and New Zealand.
Crowdcube CEO and co-founder, Westlake, said of the news: “We’re delighted to have given everyday investors the opportunity to invest in our fast growing business.
“This record-breaking fundraise from our crowd of registered investors at the same time as backing by an established VC firm is a huge thumbs up for our business, team and the growth path that we outlined.
“This is the first time that any sizeable fundraise has meshed traditional and alternative finance methods and we expect to see more of this in the future. Crowdcube is in a fantastic position to pursue our growth plans and continue to support both investors and small and growing businesses in their investment and finance requirements.”