The Crowd raises £4.4m in first half of 2013 versus £2.7m for whole of 2012
Exeter, UK – 5 June 2013: Crowdfunding is taking off as an alternative source of finance for British entrepreneurs judging by the acceleration in funding that the world’s first equity-based crowdfunding platform, Crowdcube, is experiencing. In the first five months of 2013 it raised £4,400,000 for 20 businesses compared with £840,000 for 11 pitches in the equivalent period of 2012.
Luke Lang, co-founder of Crowdcube says, “That’s a whopping 524% increase and we’re only at the start of June! In fact, we funded 25 pitches for a total of £2.7 million during the whole of last year – that’s a huge leap and we’ve smashed our targets.
It’s fantastic to see the model taking off like this in the UK. We’re excited about the next phase of our growth at home and abroad.”
Crowdcube, which pioneered equity crowdfunding, funded nearly £3.5m in the last two months (April and May), with eight businesses reaching their targets in May.”
14 of the 25 successful pitches this year were for £100,000 or more. The top pitches in 2013 to date are:
• In May, Crowdcube raised £1.5 million in just three days from 256 of its members. This set a new world-record for the biggest equity crowdfunding deal. The capital is being used to expand internationally, to recruit more staff and to ramp up its marketing activity.
• The Rushmore Group, owner of three members’ clubs in London, secured £0.5 million investment from 72 investors in April. This was the third time it had used Crowdcube, having previously raised £1.5 million in November 2011 and January 2012.
• Lawbit, an online legal service providing simple contracts for small companies, acquired nearly £400,000 from 177 backers in May.
Clive Rich, founder of Lawbit says, ”We already had angel backing but when we discovered Crowdcube and the power of the crowd, we were able to raise almost double the investment in a few days; we’re delighted to have found a group of like-minded, passionate investors. Working with the guys at Crowdcube is great; they’re professional, very knowledgeable and go the extra mile to be helpful.”
Key growth statistics for Crowdcube
• £4.4 million raised so far in 2013 compared with £2.7 million in the whole of 2012.
• Nearly £3.5 million secured in the last two months (April and May) alone, with eight businesses funded in May.
• 20 businesses funded January – May 2013, compared to 25 throughout 2012.
• The biggest single investment through the platform is now £250,000, increasing from £100,000 previously.
• Over 35,000 registered investors.
• The platform has raised nearly £10 million for well over 50 businesses since launch in February 2011.
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About Crowdcube:
Launched in February 2011, Crowdcube is the world’s first equity-based crowdfunding platform. Dedicated to helping UK-based businesses raise finance, Crowdcube provides a web-based platform where entrepreneurs can showcase their business’s investment potential to a nation of ‘Armchair Dragon’ investors in return for equity. This revolutionary model for raising business finance empowers entrepreneurs to bypass traditional business angel networks, venture capital firms and banks to secure funding by connecting them directly with members of the public.
Investing in start-ups and early stage businesses involves risks, including illiquidity, lack of dividends, loss of investment and dilution, and it should be done only as part of a diversified portfolio. Crowdcube is targeted exclusively at investors who are sufficiently sophisticated to understand these risks and make their own investment decisions. Crowdcube is authorised and regulated by the Financial Services Authority (No. 572026).
NOTES TO EDITORS
For further information please contact:
Luke Lang
Marketing Director, Crowdcube
Email: luke@crowdcube.com
Telephone: + 44 (0)1392 241319 or +44 7929 742229
Twitter @crowdcube
Teresa Horscroft
PR Consultant, Eureka Communications
Email: teresa@eurekacomms.co.uk
Telephone: +44 (0)1420 564346 /+44 7990 520390
Twitter: @teresahorscroft
Jane Lee
Email: jane@eurekacomms.co.uk
Telephone: +44 (0)1273 470199
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