Balderton Capital, one of Europe’s largest venture investors, has invested £3.8m in crowdfunding platform Crowdcube, which is used by a number of operators in the eating and drinking out sector to raise money for expansion.
The investment comes as part of a £5m fundraising bid by Crowdcube. Crowdcube will complete its Series B round by offering a £1.2m crowdfunding, which opens at midday on Tuesday 22 July.
Darren Westlake, chief executive and co-founder of Crowdcube, said: “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.”
Tim Bunting, general partner at Balderton, who will join Crowdcube’s board of directors, said: “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.”
Since launching in 2011, Crowdcube has raised over £30m for more than 130 start-up, early stage and growth businesses. One of the most recent high profile examples has been Chilango, the Mexican restaurant group, which this month exceeded its £1m crowdfunding target on Crowdcube through so-called “Burrito Bonds”.
