Crowdcube ready to take on IPO market with £6m investment
Announcement comes on same day as major funding rounds in alternative finace providers Seedrs and iwoca
Startups Awards winning crowdfunding platform Crowdcube has secured £6m funding in a deal led by Numis and Draper Esprit, alongside existing backers Balderton Capital.
Launched in 2011 by Young Gun Luke Lang and Darren Westlake, the Startups 100-listed equity crowdfunding site says its gives start-ups access to a wider field of potential investors, and gives investors the opportunity to gain stakes in businesses usually be restricted to corporate investors.
To date almost 200,000 investors have registered on the site, raising more than £95m for over 270 businesses including JustPark; which recently bagged £3.7m, Camden Town Brewery (£2.8m) and easyProperty (£1.4m).
With more than 70 employees across its London, Barcelona and Exeter office, the company will use the round to expand its team and to fuel product devlopment – including the creation of a new solution for companies looking to go public.
Crowdcube will work with Numis, which has raised £10bn for businesses since 2009 for over 46 initial public offerings (IPOs), to enable large high growth businesses who are ‘going public’ on the London Stock Exchange’s Main Market or AIM to access individual investors.
The news comes on the same day that fellow alternative investment platforms Seedrs and iwoca have announced major funding rounds, highlighting growing competition in the market and increasing demand as businesses turn to alternative lenders for more flexible and accessible finance.
Westlake commented: “We’re on a mission to help more businesses raise the finance they need to grow, create jobs and deliver returns to investors. We’ve dominated the democratisation of seed-stage equity investment since we launched in 2011 and we’re determined to do the same for larger businesses. We want to put the Public back into IPO.
“Our goal is to solve the funding continuum for ambitious, high growth businesses; delivering seed-capital right through to IPO. We have a proven track record of disrupting the status quo. With high calibre new investors joining the team who share our vision of widening companies’ access to capital, this new round of funding puts us in a very exciting position.”
Oliver Hemsley, CEO and founder of Numis, said, “Crowdcube has created an impressive business model and technology platform that makes it possible for people to join together to finance pioneering businesses.
“Numis has a long track record of helping companies access funding for growth and this investment in Crowdcube will put Numis at the centre of the entire investment chain, from initial start-up capital all the way to IPO. We are very excited to be part of an innovative fintech solution to help the public markets evolve and connect retail investors directly with fast growing businesses.”