Westlake and Lang co-founders of Crowdcube.

If further proof is needed to convince that equity crowd funding is growing in reputation as well investor confidence Crowdcube have delivered it.  They used their own platform to raise £1.5 million in just three days from 259 investors. Existing investors met the initial funding target of £250,000 within the first five hours of the pitch going live, making it the fastest equity funding on a crowdfunding website anywhere in the world. The pitch was then opened up for others to invest with one million pounds being invested in the following 24 hours. The investment, which sets a new world record for funds raised via an equity crowdfunding platform, will be used to fuel Crowdcube’s next phase of growth.

Launched in 2011 by Exeter-based Darren Westlake and Luke Lang, Crowdcube have been innovators in the equity crowd funding space in the UK.  They give investors the opportunity to invest and become shareholders in start up ad expanding businesses.  As banks have retreated from this sector Crowdcube and other equity crowd funding sites and helping entrepreneurs secure both finance and motivated share holders. Securing FSA approval in February 2013 has helped propel them forward.

They have listed 46 businesses that have raised £6,713,000 from 33,472 small investors. (Stats as of 13/05/2013)  With an average investment of £2,440 it is clearly an investment space open to many investors.  The founders have talked about the strength of idea and quality of entrepreneurs as being the motivators behind the crowds support.

In regards to their own recent raise with the EIS scheme in place the average spend increased to £5,795.  Darren Westlake, CEO and co-founder commented that the   

“The response from our members was truly overwhelming and really demonstrates the power of equity crowdfunding to provide platforms for people to support businesses they think are worthy of investment. To raise £1.5 million in only three days is an astonishing achievement and it puts us in a strong position to realise our growth ambitions on behalf of our new investors.”

Crowdcube will use its investment to employ more team members to support its rapid growth; to execute its marketing strategy focused on raising awareness of Crowdcube amongst entrepreneurs and investors; and to expand its equity crowdfunding platform internationally – in Sweden, Brazil and the USA initially.

Westlake continued:

“We have spoken to a number of venture capital firms over the past six months and although we agreed terms with one US-based institutional investor, the appeal of crowdfunding ourselves again was too great. It’s such a rewarding experience to know that so many people believe in what we’re doing. Our investors are a ready-made community of advocates.”

Top three funded pitches:

1. Crowdcube, the equity crowdfunding website raised £1.5 million in just three days from its members via the Crowdcube website.

2. The Rushmore Group, owner of three members’ clubs in London, secured £1 million investment from 143 investors in November 2011 to fund the development of an exciting new venue in the heart of London, early next year.

3. Escape the City, the global community for people who want to ‘do something different’ with their careers turned down two offers from well-known global Venture Capital firms and raised £600,000 on Crowdcube in just two weeks.