The investment was raised in ten days and was made up of contributions from 162 investors.

Crowdcube allows members of the public to invest in UK-based companies online in exchange for equity. Since launching in February, Crowdcube has raised £1.7 million in finance for nine businesses and the online service now has 37 registered businesses.

Darren Westlake, co-founder and CEO of Crowdcube says: ‘Traditional methods of funding are often a barrier for entrepreneurial growth and the emergence of alternative sources of business finance, like crowdfunding, is proving to be a very effective for investors.’

Financing provider Edge Forecast Software started funding on the same day as Crowdcube, raising £15,000 in return for 20 per cent of the business, becoming the ninth biggest investment on the site.

Westlake adds: ‘Crowdcube now has over 6,700 registered members seeking investment opportunities and we are delighted to have used our own website to raise the money we need to accelerate our own growth.’