In the 12 months since its formation, online equity finance platform Crowdcube has seen £2.3 million raised via its service.
 
Launched in February 2012 by Exeter-based entrepreneurs Darren Westlake and Luke Lang, Crowdcube has seen successful fundraisings achieved by 11 companies, including alcoholic drinks company Kamm & Sons and London members clubs operator The Rushmore Group.
 
Westlake says that frustration from existing investments is fuelling an interest by people to invest in ‘Small Business Britain’.
 
He adds, ‘We’re seeing a good mix of new armchair dragons and traditional business angels signing up to Crowdcube.
 
‘It’s positive to see the impact we’re already having on Britain’s economy. The emergence of alternative sources of business finance, like crowdfunding, is already proving to be a very effective and popular solution for both entrepreneurs and investors.’
 
To date, Crowdcube has fielded 150 pitches from 694 requests and recorded an average investment of £1,854.
 
Its largest fundraising came through the £1 million secured by The Rushmore Group in November, a world record for fundraising on a crowdfunding website.
 
Gem Misa from Righteous is looking to raise £75,000 through the platform to fund a ‘major’ marketing campaign.
 
Misa comments, ‘What I really like about Crowdcube is that it isn’t just about funding; it is a fantastic opportunity to use the power of the crowd to spread the word and build the brand as well.’
 
In its first year of operating Crowdcube has also raised £300,000 for its own development, completed in December, in a round completed in ten days.
 
Of the 11 successfully funded entrepreneurs, ten are male, with the average age being 42.