Crowdcube and Crowdfunding

By Jason Hulott | Crowdfunding

Just as the name suggests, Crowdcube is a crowdfunding platform through which businesses may secure the equity funding they need – whether those funds are required to start-up, to grow your company, or to meet a need to bolster your working capital.

Since Crowdcube was founded back in 2011, it is among the more established investment crowdfunding platforms in the UK, attracting the support and finance of major players to raise funding for growing businesses.

Raising finance through Crowdcube

As an established investment crowdfunding platform, Crowdcube is probably more discerning – and, therefore, secure and reliable – than some others.

The sophistication of its systems emerge through the eligibility criteria adopted by Crowdcube for potential recipients of funding:

  • you must be a limited liability company incorporated in the UK or Eire;
  • there are restrictions on the type of businesses considered – property development companies and those involved in film or theatrical productions, for example, are excluded; and
  • your company has a currently valid registration at Companies House.

Crowdcube is also more actively involved in assessing the structure, nature and performance of your company when assessing any application for funding. That assessment includes, for example, details about:

  • your company structure – if it features a group structure, for instance, the application must be made by the head company (with its company registration number clearly indicated);
  • current shareholders – and details outlining the terms of investment by any majority institutional shareholders;
  • the financial history of your company and its corporate directorship.

The minimum amount of funding you may apply to raise through Crowdcube is £50,000 but the average request is currently for £670,000. The platform’s largest successful bid for funding stands at £10 million.

READ  Beginners Guide to Crowdfunding

Although most crowdfunding sources are from within the UK, Crowdcube can organise crowdfunding campaigns amongst businesses with headquarters in Europe – although you may need to make a special application for such requests.

Your approach to crowdfunding with Crowdcube

Crowdcube targets small and medium-sized enterprises in the UK for whom crowdfunding is one of the fastest-growing sources of investment capital for business growth.

To make a success of any approach for funding through its platform, Crowdcube urges businesses to:

  • make sure your business plan is ready, in place and makes the strongest possible business case;
  • have a great product;
  • devise a strong and coherent campaign strategy;
  • ensure your branding is effective, consistent and professional;
  • support that strategy with an engaging and focussed video;
  • formulate a professional pitch to your potential crowdfunding investors – to demonstrate that you mean business;
  • start the ball rolling by attracting initial investors – and help to make that good start snowball;
  • exploit the potential of social media through your crowdfunding listing on Crowdcube;
  • develop a coherent and consistent email campaign; and
  • tell the story of your company – its products and services, of course, but also what fired you and your team’s passion for the line of business you are in.

If you are looking for further inspiration to make the most of crowdfunding possibilities, Crowdcube’s website offers a host of success stories – and the secrets of their success.

All data cited in this article is correct at the time of writing.

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About the Author

Jason Hulott is Business Development Director at Digital Marketing Specialists, Speedie Consultants. He is Google Partner certified. His role is to identify and implement traffic generating and revenue increasing ideas for our client base.