Crowdcube launches seed funding service for early stage businesses
A report by Beauhurst found the percentage of seed-stage deals completed on equity crowdfunding platforms increased from just 5% to 30% between 2011 and 2014
Crowdfunding platform Crowcube has launched a new servivce to help UK-based start-ups raise equity finance as quickly as possible.
The Sprint Programme aims to provide seed stage start-ups looking to raise between £20,000 and £150,000, with a quicker and more cost-effective method of finding finance from Crowdcube’s investor community.
Crowdcube is marketing the addition to its platform as faster and leaner, with no legal or admin fees and a pitch going live in just 14 days. There are a number of qualifying criteria to ensure the process is as efficient as possible.
As well as the £20,000 minimum and £150,000 maximum overfund target, it must be the companies’ first equity raise, and they must have already begun their SEIS submission. They must also have current Companies House Articles of Association and adopt Crodwdcube Articles of Association.
Additionally, pitches must follow a defined ‘short but punchy’ text format, there are no upfront fees and you pay nothing if you don’t manage to raise your target.
One of the first start-ups to participate in the Sprint Programme raised its investment target of £150,000 in two hours. The Pressery, which produces a range of almond milk drinks, secured finance from 58 people, including £30,000 from a single backer.
The Pressery co-founder Natali Stajcic commented: “We are delighted with the response from Crowdcube members towards our pitch and can’t quite believe we reached our target in under two hours. The Sprint Programme appealed to us because we felt very ready for the next phase of our business and it pushed us to get there quickly.”
Co-founder of Crowdcube Luke Lang said: “Since launching in 2011, our investor base has invested over £70m funding over 205 businesses. One in every five businesses is a pure start-up, accounting for £19m of the funded total.
“We want to continue building on that track record of success with a streamlined process to make raising finance even more accessible for budding entrepreneurs who want to turn their business idea into a reality.”