Propel Morning Briefing

Crowdcube smashes world record by raising £1.2m in 16 minutes

The crowd-funding platform Crowdcube took just 16 minutes to raise £1.2m from private investors to help fund its expansion plans.

The company now intends to double staff numbers and open offices in London and Scotland after securing new investment.

Crowdcube completed the £5m fundraising round with a record-breaking pitch which reached its £1.2m target within 16 minutes of going live on its own website on Tuesday.

This was 12 times faster than the previous record for the fastest crowd-funded pitch and set a world record for the fastest equity crowdfunding raise, with 141 investors injecting an average of more than £8,500.

Darren Westlake, chief executive and co-founder of Crowdcube, based at the University of Exeter’s Innovation Centre, said: “We’re delighted to have given everyday investors the opportunity to invest in our fast-growing business. This record-breaking fundraise from our crowd of registered investors at the same time as backing by an established venture capital firm is a huge thumbs-up for our business, team and the growth path that we outlined. This is the first time that any sizeable fundraising has meshed traditional and alternative finance methods and we expect to see more of this in the future.”

Revenue at Crowdcube for the financial year ending September 2013 was £323,000, with a gross profit of £310,000.

The revenue target for the current financial year ending September 2014 is growth of 278% to £900,000.

The Crowdcube pitch says: “To achieve this we set quarterly sales targets and this have been met and exceeded for every quarter for the first three quarters of this year.”

Crowdcube has previously raised £320,000 in 2011 and £1.5m in 2013 by crowd-funding itself on its own platform. Last month, Crowdcube launched mini-bonds for the established brands Chilango and River Canteen and Deli, raising a combine total of more than £2.3m so far.

 

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