Businesses turn their backs on banks raising £2.3M through Crowd funding

Crowdcube say that so far 11 pitches have successfully funded on the site. The investment is being used to help the successful businesses to grow, creating additional revenue and jobs and supporting the growth of Britain’s economy. They estimate that 246 jobs will be created over the next three years.
Crowdcube is the first crowdfunding website in the world to give members of public online access to investment in UK start-ups and growing companies in exchange for shares. The public decides which businesses fund and which do not, so that the ‘wisdom of the crowd’ prevails.
With more than 8,800 people registered on the site to receive information about the companies seeking finance, Crowdcube expects that the Government’s tax boost for investors via the Seed Enterprise Investment Scheme (SEIS) as well as the poor performance of other investments will drive investors towards new types of investment opportunities.
Co-founder Darren Westlake comments: “People who are frustrated with the performance of their existing investments and want to find new types of investment, as well as Government tax incentives like SEIS, is fuelling an interest by people to invest in Small Business Britain.
We’re seeing a good mix of new armchair dragons and traditional business angels signing up to Crowdcube. The more people that invest using sites like ours, the more small businesses will find the finance they need to start-up or grow.
It’s positive to see the impact we’re already having on Britain’s economy. The emergence of alternative sources of business finance, like crowdfunding, is already proving to be a very effective and popular solution for both entrepreneurs and investors.”
Gem Misa of Righteous aims to raise £75,000 to fund a major marketing campaign to promote its natural salad dressings said: “What I really like about Crowdcube is that it isn’t just about funding; it is a fantastic opportunity to use the power of the crowd to spread the word and build the brand as well. 
We are finding that the investors we’ve attracted through crowdfunding are interested for the ‘right reasons’ – because they simply love our products and really believe in what Righteous is about, and therefore want to be a part of it.  So in a way we aren’t just gaining investors, we are gaining a group of supporters who can help tell more people about our products.”
So who is investing:
  • The average amount invested by a single investor is £1,854
  • The largest amount invested by a single investor is £100,000 and the smallest is £10.
  • The most popular investment amount is £5,000
  • The average age of entrepreneurs raising finance on Crowdcube is 42 years.
It is free to register as a potential investor on Crowdcube. Entrepreneurs only pay a fee when they successfully hit their investment target.