A Series B fundraising for Crowdcube has seen the alternative finance platform secure its desired capital amount in 16 minutes.
Last week the crowdfunding platform announced that it had signed up Balderton Capital as an equity backer, ahead of going back to its community of casual investors for the remainder.
A total of 141 investors supported Crowdcube’s Series B, with the average amount committed standing at £8,500.
The money raised will be used to fund an expansion of Crowdcube’s Exeter-based team, with new offices opening in London and Scotland.
Crowdcube’s latest funding round gives it a value of just under £20 million, with the £5 million total worth a 25.64 per cent equity stake – according to the company’s website.
Speaking to GrowthBusiness, Crowdcube co-founder Luke Lang says, ‘We’re over the moon. It’s overwhelming to have such strong support for Crowdcube and our fantastic team.
‘We’re very much looking forward to growing our dominant market position and continuing to disrupt and democratise investment, both here in the UK and overseas.’
The platform’s last round, in May 2013, was worth £1.5 million and gave it a value of £7.1 million. The three-day fundraising was declared a world record for funds raised via an equity crowdfunding platform.
Since setting up in 2011, Crowdcube has facilitated the raising of £32 million for 130 start-ups. The largest amount raised on the platform is £1.95 million, by television personality Kevin McCloud for his Hab Housing venture.
More on Crowdcube:
- Taking the equity crowdfunding model and going global for Crowdcube
- Darlington FC puts future in crowdfunding
Darren Westlake, CEO and co-founder of Crowdcube, says that the deal represents the first time that a ‘sizeable fundraise’ has combined traditional and alternative finance methods – something he predicts will be seen with increasing regularity in the future.
‘This record-breaking fundraise from our crowd of registered investors at the same time as backing by an established VC firm is a huge thumbs up for our business, team and the growth path we outlined,’ he adds.
The investment round arrives soon after the launch of a new product by Crowdcube, a mini-bond offering targeting the debt market. In June, Mexican restaurant chain Chilango became the first to utilise the system and raise £1 million. Since then, Hugh Fearnley-Whittingstall’s River Cottage business itself raised £1 million for site growth.
