Balderton Capital has piled £3.8m into leading UK equity platform Crowdcube.
The cash will make up the majority of a Series B round that is targeting a total fundraise of £5m – with the remaining £1.2m made up by the crowd. That £1.2m Crowdcube campaign will open next Tuesday. Crowdcube is the latest in a line of disruptive businesses backed by Balderton Capital. The Venture Capital firm has also invested in cutting-edge financial tech companies Zopa, Nutmeg and GoCardless. Crowdcube will be hoping that a major investment from a VC of Balderton’s calibre will bolster confidence amongst the crowd to jump on board with the remaining fundraise.
Tim Bunting, General Partner at Balderton, who will join Crowdcube’s Board of Directors, commented:
“We love the way Crowdcube is disrupting and democratising investment into businesses seeking growth finance; Balderton is always looking to support new approaches to traditional financial services, and Crowdcube’s trailblazing model makes investment accessible, affordable and transparent. We’re excited about working with this team and building on their dominant position in the crowdfunding market.”
Crowdcube will be using the £5m to expand its operations both within and beyond the UK. Among the platform’s plans are to double its team to 50-strong, open news offices in London and Scotland, expand its Exeter-based HQ and to add to the seven international joint ventures that have already been established.
“We’re delighted to secure growth finance from such a renowned VC who will undoubtedly add tremendous value both strategically and operationally. We’ve built a pioneering and award-winning service over the last few years. This investment, alongside the crowd, puts us in an even stronger position to provide essential growth finance for businesses and inspire a new generation of investors.”
Crowdcube has recently surpassed the £30m milestone in cumulative funds raised – with roughly half of that (£15m) raised this year alone. Unprecedented growth over the first half of 2014 has become a common trend among the major UK alternative finance platforms. This latest investment for Crowdcube will only quicken the pace of that growth.