Crowdcube partners with Braveheart to offer new crowdfunding co-investment fund
Fund will see investors backing selected successfully funded ventures
Small business-focused investment management group Braveheart Investments today announced a partnership with equity crowdfunding platform Crowdcube to launch a new co-investment fund.
The Crowdcube Venture Fund, which Braveheart claims is the first of its kind, will enable investors to build a portfolio of investments by co-investing in selected ventures that have successfully funded on Crowdcube.
Crowdcube and Braveheart will work together to create the fund, with Crowdcube sourcing investments and Braveheart subsidiary Strathtay Ventures carrying out the screening and fund management role.
In order to qualify for investment through the fund, companies must raise at least a third of their funding goal on Crowdcube.
Investors must back the Crowdcube Venture Fund with a minimum of £2,500, which will seek to qualify for Enterprise Investment Scheme (EIS) and Seed Enterprise Investment Scheme (SEIS) tax reliefs.
Braveheart said investors would be accepted into the Fund on a case-by-case basis and can subscribe or top up over the initial two-year investment period.
Founded in 2010 by Darren Westlake and Luke Lang (pictured), Startups 100-listed Crowdcube has become one of the UK’s leading crowdfunding sites.
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Across 2013 the platform raised £12.2m for 54 UK business, a 500% rise on 2012.
Darren Westlake, co-founder and chief executive of Crowdcube, said: “It makes sense to us to partner with Bravehart which is an established, quoted fund manager with a strong track record.
“Many investors are attracted to the idea of crowdfunding but lack the time to fully research opportunities and monitor the progress of a diversified portfolio. This Fund offers them a tailored solution.”
Geoffrey Thompson, chief executive of Braveheart, commented: “We are excited to link up with Crowdcube and establish this new approach to investing.
“There are a large number of investors who like the crowdfunding concept but who, for one reason or another, find the DIY route problematic. We hope they will find this new initiative of interest.”