Crowdcube has partnered with London-based £100m venture capital fund Episode 1 to invest in B2B software and deep-tech start-ups.

Start-ups working in digital infrastructure and software-as-a-service have until October 30 to pitch to Episode 1, which will sift applications.

Episode 1 will consider investing in successful applicants, whose businesses ideas will then be passed on to Crowdcube for an equity crowdfunding campaign.

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To qualify for initial consideration, the businesses will need to be registered in the UK and looking to raise between £250,000 and £3m.

Previous Episode 1 portfolio companies include Zoopla, Shazam and carwow, while disruptive brands which have raised money on Crowdcube include Bidstack, Intelligence Fusion and Fidel UK, which completed a £18m Series A funding round at the end of 2019.

Crowdcube says there is growing appetite for investment in this space with high-growth SaaS companies raising around £7bn in finance since 2011.

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The crowdfunding platform has helped raise £850m for more than 1,120 crowdfunding raises since it was founded in 2011. Fintechs that have raised money through Crowdcube include Monzo, Revolut and Nutmeg.

Simon Murdoch, managing partner of Episode 1, said: “B2C businesses are easy to understand, so they tend to get more coverage than B2B businesses, particularly those which are more specialist.

“What we’ve found is that a large number of IPOs in the US are B2B. In 2018-2019 there were six times as many IPOs for B2B than there were for B2C businesses. Sectors that are lacking in competition, like software infrastructure and deep tech, are good areas for investors to look into.”

Matt Cooper, chief commercial officer Crowdcube, said: “Crowdcube is delighted to be partnering with Episode 1 on our hunt for the start-ups building software infrastructure that’s enabling change. Developments in API-driven technology, open-source tech and analytics software are now more important than ever. We recognise this potential and want to give everyday investors the opportunity to be a part of their future success.”

Further reading

Matt Cooper, Crowdcube Q&A – ‘What works well is when a business can tell a story’