More than 37,000 crowd investors alongside a venture capital firm have collectively invested over £8 million in growth capital for Crowdcube, more than double the last UK record of £4 million.
For those industry commentators who predicted that Brexit would serve a nail in the coffin for promising fintech businesses, Darren Westlate, CEO and founder of Crowdcube says that his company has, “played a key role in cementing Britain’s position as a global fintech leader, and this shows that investors’ appetite for backing ambitious British businesses seeking growth capital remains as strong as ever.”
This injection of funding by crowd investors, including £1million from backers Balderton Capital, will be used to realise growth plans. This includes an ambitious move to develop and offer a secondary trading environment on their platform, which will give shareholders of private companies the option to sell their stake.
This is the fourth time that Crowdcube have raised finance from its crowd, which now stands at nearly 300,000 people. This time the company published a prospectus, which enabled it to raise more than the €5 million limit set by current EU rules. The pitch hit its £5 million target in just four hours and the round closed on just over £8 million.
Mr Westlake describes this record-breaking funding as a “watershed moment” that will facilitate “larger rounds to fund the growth of Britain’s ambitious businesses.”
This will be welcome news for the UK's start-ups and small businesses, for which crowdfunding platforms provide increased opportunity for investment and awareness.