Crowdfunding success stories: Crowdfunder
The reward-based crowdfunding platform which collaborated with Crowdcube to raise £650,000
Reward-based crowdfunding site Crowdfunder reflects the power of crowdfunding by numbers after it turned to fellow crowdfunding platform Crowdcube to raise a considerable amount of growth capital, £650,000, on April 23 2014.
Securing a “record” £230,000 in the first 15 minutes of its pitch going live, Crowdfunder reached its initial £500,000 target within three hours and 30 minutes and the round was quickly oversubscribed.
Within 24 hours, the platform had closed £650,000 with involvement from over 200 investors, including independent innovation charity Nesta which backed £150,000 in the business, and was claimed as Crowdcube’s “fastest ever funding round to date”.
Founded in 2012 as a merger between Exeter-based Crowdcube and the now re-branded Peoplefund.it, Newquay-based Crowdfunder alleges to be the “UK’s largest crowdfunding network having launched more than 3,000 projects”; supporting reward-based campaigns from businesses, charities and social enterprises.
To date, the site has raised £1.5m for its 3,000 campaigns which includes helping a seven year-old raise money to publish his own cookery book; “the youngest ever pitch”, and enabling 5,000 children to plant trees in their schools through nature project Fruitshare.
Crowdfunder managing director, Phil Geraghty, discussed how the investment pointed to a rising demand for crowdfunding:
“[This funding round] is a massive endorsement of what we’ve been doing at Crowdfunder – and the sheer power of crowdfunding as a way to raise investment.
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“Crowdfunder makes a great investment because we are a digital high-growth business in a fast growing market, but also we are really proud of the social and economic impact that we are having across the whole of the UK.”