Investment crowdfunding with Crowdcube
DesignSpark has partnered with Crowdcube to give you easier access to Crowdcube’s crowdfunding financing services to build and grow your business.
Crowdfunding is where a group of individuals put money together to back an idea or business. There are numerous crowdfunding business models, which include equity, property, rewards-based, donation-based, peer-to-peer lending, micro-lending and peer-to-business lending, just to name a few.
Crowdfunding started to gain real traction in 2008/9 with the likes of Kickstarter and IndieGoGo, two rewards-based platforms in the US, and also with JustGiving, a donation-based crowdfunding platform, and Crowdfunder, a rewards-based crowdfunding platform, both in the UK.
In 2011, Crowdcube, the world’s first investment crowdfunding platform, was launched. Crowdcube offers equity crowdfunding to businesses, whereby they can raise investment by releasing equity (shares) in their company.
Crowdcube has one of the UK’s largest community of equity investors, with over 390,000 to date (May 2017). The crowd includes professional investors, high-net worths, VC firms, as well as your own network of customers and advocates.
Named the leading crowdfunder for investment, Crowdcube now dominates the market with a 48% share following a record-breaking start in 2017, and is 2.5 times bigger than its nearest competitor, according to data from Beauhurst.
Businesses can raise anything from £50,000, with the average raise size to date being £480,000. The likes of GripIt Fixings, Witt Energy, Pavegen and POD Point have all raised between £1m-£4m on Crowdcube.
You can apply to Crowdcube if you have a registered UK Limited business or if you have the headquarters of your business in Europe. Please note this is subject to certain criteria, and legal and regulatory requirements. If you are a sole trader, a group or charity, then rewards-based crowdfunding might be more suited to you. You can enquire for equity crowdfunding by registering your interest below.
There is no fee to list your business on Crowdcube. If you complete a successful raise, meaning if you hit your target amount, Crowdcube will then deduct a 7% success fee (exc. VAT) from the amount of funds raised on Crowdcube. The 7% success fee constitutes the commission rate.
However, as a member of the DesignSpark community, if you register your interest in Crowdcube funding using the DesignSpark portal and your project is accepted for funding by Crowdcube, you will automatically qualify for a 10% discount off the standard commission rate!
Get in touch with Crowdcube using the form linked below if you are looking to raise equity finance for your start-up venture. Remember you are contacting Crowdcube by using the form, not DesignSpark as we’re not directly involved in the application process.