The Reading-based company secured the financing from 121 investors who will share 10 per cent of equity in the business. The amount was raised in nine days.

Civilisedmoney aims to use a website to advertise projects, organisations and businesses that are seeking loans or funds for expansion. The service is an extension of Crowdcube, which launched in March, and enables the public to make investment in businesses advertised on the website.

Civilisedmoney is using Crowdcube’s technology to connect investors with project organisers and businesses. Internet users can view business pitches and commit their own personal funds to the businesses. It is billing itself as more moral lender compared with the major banks.

Neil Crofts, co-founder of civilisedmoney, says the company will provide consumer lending and borrowing in a similar style to the high street banks, and plans to launch new products to make it a ‘one stop shop’ for people-to-people financial services.

Crofts, a former head of strategy at internet consultancy Razorfish, and Jason Scott, a former real estate account manager, spent four years on the development of the business. He says, ‘Civilisedmoney’s aim is to make money and finance fairer for everyone.’

Businesses and organisation currently pitching for funds on the service include Rhythm of Change (ROC), which is seeking £100,000 to establish a music and youth development programme in South Africa.