Darren Westlake and Luke Lang
In a climate of restricted bank lending, Crowdcube offers UK entrepreneurs an alternative way to access seed or growth capital. They simply write a pitch and decide the amount of equity they want to give away for the investment, then ordinary people can invest as little as £10 towards their online target – empowering a nation of armchair dragons.
In promoting the pitch to their network, entrepreneurs drum up support and brand loyalty for their business. In the case of The Rushmore Group – which became the first company to raise £1m through any crowdfunding site worldwide using Crowdcube – it can also provide a clever hook to gain media coverage.
Having started with £100,000, raised from family and friends, the founders of Crowdcube have just used their own platform to raise £300,000 growth capital to expand the business in 2012.