Crowdcube Successfully Crowdfunds Investment Capital

At a time when the economic crisis makes it increasingly difficult for businesses to grow or even survive, a UK crowdfunding platform has defied the odds. Crowdcube, which allows people to invest in new and expanding business in return for an equity stake, has successfully used its own platform in securing investment of £300,000 from 162 investors for the next phase of its development growth.

Crowdcube was founded by serial entrepreneur Darren Westlake along with marketing consultant and strategist Luke Lang. It is based on the concept of the BBC television program Dragon's Den, in which budding entrepreneurs pitch their business idea to a panel of successful business men and women, offering a percentage stake in their idea in return for capital investment. With Crowdcube, instead of approaching a panel of intimidating business giants, entrepreneurs can seek out funding from the crowd, or armchair dragons through crowdfunding.

Along with its sister platform, Crowdfunder, which enables creative projects to search for investment, Crowdcube has helped put the UK on the global crowdfunding map. This success along with the increasing rise of crowdfunding platforms in the UK have caught the attention of the British government. Business Secretary Vince Cable announced the creation of a taskforce to examine financing options for small and medium businesses with specific focus on crowdfunding.

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.
Darren Westlake, CEO & Co-founder Crowdcube

Crowdcube currently has over 6,700 members representing 37 registered businesses. It is the first crowdfunding site in the world that allows members of the public to invest and receive shares in UK registered companies, and since its launch in February 2011 has helped raise over £1.7 million for up to nine businesses.