Exeter Innovation Centre client sets crowdfunding record

Published on: 23 July 2014

The Crowdcube team watching the record-breaking raise.

Exeter Innovation Centre clients Crowdcube raised £1.2million in just 16 minutes using their own crowdfunding platform, setting a new record in the process.

Crowdfunding enables businesses to raise finance from 'the crowd', meaning large amounts of funding can come from a series of small individual investments. Crowdcube are a leader in the field - they host funding pitches on their website, from where interested investors can select the businesses that excite them.

The funding was completed 12 times faster than the previous record for the fastest crowdfunded pitch and set a world record for the fastest equity crowdfunding raise. The crowdfund, followed the announcement last week of £3.8million of investment from venture capital firm Balderton Capital.

One hundred and forty one investors backed Crowdcube’s Series B round - the second round of private investment in a business - of crowdfunding. The average amount invested was more than £8,500.

Darren Westlake, CEO and co-founder commented: “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 VC 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 fundraise has meshed traditional and alternative finance methods and we expect to see more of this in the future. Crowdcube is in a fantastic position to pursue our growth plans and continue to support both investors and small and growing businesses in their investment and finance requirements.”

As announced last week, Crowdcube will use the £5million total investment to further expand its operations in the UK and internationally. The firm is planning to double its team to 50 staff, expanding its head office in Exeter and opening new offices in London and Scotland. It is also expanding internationally beyond the seven joint ventures that it has already established.

The Innovation Centre is a SETsquared business acceleration centre. SETsquared is a partnership between the Universities of Bath, Bristol, Exeter, Southampton and Surrey designed to support enterprise activity and business creation.

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