Crowdcube raises £1m via Chinese investment firm

The Startups 100-listed crowdfunding platform, which has allowed £250m be invested into businesses, will now look to expand into the Chinese market

Crowdcube, the equity crowdfunding platform, has raised £1m via Chinese investment firm GuanQun Investment.

The backing, which was made by the London arm of the Beijing-based investment firm, will help Crowdcube explore possibilities in the Chinese market – with view to a possible expansion.

Founded in February 2011 by Darren Westlake and Luke Lang, Startups 100-listed Crowdcube was a foreign concept to most upon inception – launching into a start-up world that knew of little else other than seed funding or angel investment.

However, in the space of just six years, the platform has seen £250m invested into businesses on the site via a world of armchair backers who can invest in a company in exchange for equity for as little as £10.

The site currently boasts over 400,000 members with over 115,000 joining over the past 12 months, while its app has processed £4m worth of investments alone – with individual investments of up to £100,000.

In Q1, 29 businesses raised over £23m via Crowdcube, with some of the successful start-ups including food business Cali Rice who closed a £1.4m round in March, and home security start-up Cocoon who bagged £2.46m.

In Q2, six businesses raised over £1m including Vita Mojo, Sugru, Zzish, Tribe, The Chapar and WiseAlpha – with Vita Mojo bagging £3.2m in June.

Lang said:

“These results show the massive change which crowdfunding has undergone since we launched in 2011. More people are signing up, investors are investing more, companies are raising more – £250m in total – and UK plc can only be benefiting.

“Crowdcube as a platform is growing nicely, with a continued focus on overseas expansion and new services for our companies and investors, all helped along by the new investment from GuanQun.”

For our guide on Crowdcube click here.

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