Bubble & Balm, based in Warwickshire, sought £75,000 of growth finance through the Crowdcube platform in return for 15 per cent equity in the business. Eighty-two investors each contributed between £10 and £7,500 to meet the funding target.
The Fairtrade bodycare business required investment to expand its award-winning product range, increase marketing activity and to meet increasing demand from retailers such as Waitrose, Oxfam, Planet Organic and a growing number of independents.
Crowdcube makes access to finance easier for entrepreneurs of newly formed and growing small businesses. Instead of competing for limited business angel or venture capital funding, businesses can use the platform to connect with a nation of small investors, ‘armchair dragons’, instead of one or two high net worth individuals to find investment.
Former city banker, Sue Acton, founder of Bubble & Balm, said: “I am absolutely delighted we have achieved our target. Raising finance is incredibly tough for any small business – Bubble & Balm included – and I was really excited when I first heard about Crowdcube. The idea of pitching our business to a wide range of people, ranging from armchair dragons looking to invest £10 through to more traditional investors with thousands to invest, was really appealing.
Acton added: “As well increasing our chances of raising the funds, I also liked the fact that the Crowdcube model fits really well with what Bubble & Balm is all about – working directly and fairly with communities and all our partners to achieve a shared success.”
“I’m very much looking forward to working with all our investors as we take Bubble & Balm to the next level. Some of our new shareholders have already offered their skills as well as their cash to support our growth, and this is another huge benefit of crowdfunding – not only do we now have the investment we need to deliver against our plans, we also have a diverse team of supporters (and customers!) too.”
Darren Westlake, co-founder and Managing Director of Crowdcube said: “This is a significant moment in the history of small business finance in Britain. In the current climate with banks being risk averse, we are thrilled that Bubble & Balm has succeeded in getting vital growth investment. This is just the start. Many entrepreneurs on Crowdcube are on the verge of achieving their funding targets using our
crowdfunding model. I firmly believe that Crowdcube is the future of business finance in Britain.”
Crowdcube do not charge a fee to register, but receive a five percent success fee. If the target funds are not met, investors get their money back and no success fee is charged to the entrepreneur.