Crowdfunding platform Crowdcube has raised £6m of investment as it prepares to engage retail investors in IPOs.
The investment is led by Numis, a leading UK stockbroker and corporate advisor, with Tim Draper, London-based Draper Esprit and existing backers Balderton Capital also joining the round.
The investment will enable Crowdcube to accelerate growth, continue the expansion of its team, ramp up new product development including the creation of a new solution for companies going public and invest further in its acclaimed marketing activities.
Darren Westlake, CEO and co-founder of Crowdcube, said: “We’re on a mission to help more businesses raise the finance they need to grow, create jobs and deliver returns to investors.
“We’ve dominated the democratisation of seed-stage equity investment since we launched in 2011 and we’re determined to do the same for larger businesses. We want to put the public back into IPO.”
Numis, which has raised £10bn for businesses since 2009 through more than 46 IPOs, will work with Crowdcube and the regulators to enable large high growth businesses who are ‘going public’ by listing shares on the London Stock Exchange’s Main Market or AIM, to access individual investors.
Westlake added: “Our goal is to solve the funding continuum for ambitious, high growth businesses; delivering seed-capital right through to IPO.
“We have a proven track record of disrupting the status quo. With high calibre new investors joining the team who share our vision of widening companies’ access to capital, this new round of funding puts us in a very exciting position.”
Oliver Hemsley, CEO and founder of Numis, said: “Crowdcube has created an impressive business model and technology platform that makes it possible for people to join together to finance pioneering businesses.
“Numis has a long track record of helping companies access funding for growth and this investment in Crowdcube will put Numis at the centre of the entire investment chain, from initial start-up capital all the way to IPO.
“We are very excited to be part of an innovative fintech solution to help the public markets evolve and connect retail investors directly with fast growing businesses.”
Crowdcube celebrated its first company exit in July 2015 when E-Car Club, which raised investment in 2013, was acquired by Europcar and delivered a multiple return to its investors.
Crowdcube has amassed an investor community of nearly 200,000 and attracts seasoned entrepreneurs of well-known and established, often VC-backed, businesses like Eden Project, JustPark, River Cottage and Camden Town Brewery, as well as start-up companies. Almost £100m has been successfully invested through the site since its launch in 2011.