Rushmore secures £1 million in crowdfunding record

A £1 million investment for The Rushmore Group, owner of three London members’ clubs, has set a world record for the largest amount of money raised for a business using a crowdfunding website.

Crowdcube is a crowdfunding website that enables the general public to invest in UK-based companies. It claims that the fundraising, which attracted 143 investors, is a new record deal using crowdfunding, the method of securing smaller amounts of funding from a wide investment base.

The funding will enable The Rushmore Group, who own the Milk & Honey club in Soho and Danger of Death on Brick Lane, to develop and launch a new venue in Soho next year. The previous crowdfunding record had been set by a project on US-based crowdfunding site Kickstarter, which raised $942,578 (£602, 285).

Co-founder and chief executive of Crowdcube, Darren Westlake, says, ‘Raising £1 million for a single business on Crowdcube is a fantastic achievement but not a surprise for us. We firmly believe that raising finance using crowdfunding will transform the way businesses raise capital in the future.’

The Rushmore Group becomes the sixth deal to be completed on the website since July 2011, with investments now totalling over £1.4 million and it has just under 6,000 registered members.

Jonathan Downey, founder and director of The Rushmore Group add, ‘We are delighted to have successfully reached our £1 million target on Crowdcube. The group’s immediate aim is now the acquisition, refurbishment and launch of a new site in Soho, London.’

Other successful deals include bodycare business Bubble & Balm who raised £75,000 and Kammerling’s, responsible for a ginseng-based alcohol drink, who raised £180,000. Small businesses and investors can sign up to the site for free and entrepreneurs pay a fee when they successfully hit their investment target.

Nick Britton

Nick Britton

Nick was the Managing Editor for when it was owned by Vitesse Media, before moving on to become Head of Investment Group and Editor at What Investment and thence to Head of Intermediary...

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