Crowdcube sounds interesting

Entrepreneur raises £75,000 using the power of the crowd


Posted by Dan Martin in Finances on Wed, 20/07/2011 - 13:24

A small business owner turned down for investment by banks has managed to raise £75,000 through a crowdfunding website.

Sue Acton, founder Bubble & Balm, sought growth finance through Crowdcube in return for 15% equity in the business. A total of 82 investors contributed between £10 and £7,500 to meet the funding target.

The Fairtrade bodycare business required investment to expand its award-winning product range, increase marketing activity and to meet increasing demand from retailers such as Waitrose, Oxfam, Planet Organic and a growing number of independents.

Instead of competing for limited business angel or venture capital funding, businesses can use Crowdcube as a platform to connect with small investors or 'armchair dragons', instead of one or two high net worth individuals.

"I am absolutely delighted we have achieved our target. Raising finance is incredibly tough for any small business - Bubble & Balm included - and I was really excited when I first heard about Crowdcube," Acton said. "The idea of pitching our business to a wide range of people, ranging from armchair dragons looking to invest £10 through to more traditional investors with thousands to invest, was really appealing.

"Some of our new shareholders have already offered their skills as well as their cash to support our growth, and this is another huge benefit of crowdfunding - not only do we now have the investment we need to deliver against our plans, we also have a diverse team of supporters (and customers!) too."

Darren Westlake, co-founder of Crowdcube, added: "This is a significant moment in the history of small business finance in Britain. In the current climate with banks being risk averse, we are thrilled that Bubble & Balm has succeeded in getting vital growth investment.

"This is just the start. Many entrepreneurs on Crowdcube are on the verge of achieving their funding targets using our crowdfunding model. I firmly believe that Crowdcube is the future of business finance in Britain."