Balderton injects £3.8m into Crowdcube

Balderton's investment was made through its £232.66m fund, Balderton V.

Crowdcube intends to raise a further £1.2m through its own crowdfunding platform, which opens to investors on July 22, bringing the total investment to £5m.

The capital will be used to grow the crowdfunding site's operations in the UK and internationally, doubling the size of the firm's staff to 50. Crowdcube will also open new offices in London and Scotland, as well as expand its head office in Exeter, England.

Company
Crowdcube is a crowdfunding platform that aims to help established businesses and start-ups secure funding by offering thousands of small investors an equity stake in the company. This allows companies in need of capital to secure funding outside of traditional routes such as banks.

Since launching in 2011 it has raised more than £30m for businesses and successfully funded more than 130 ventures, including a £1.95m investment in Grand Designs host Kevin McCloud's Hab Housing project.

Recently, Crowdcube has begun offering crowdsourced bonds, mainly for companies seeking expansion capital. Chilango, a London-based Mexican restaurant chain, has raised £1.2m through its "Burrito Bond" offered on the crowdfunding platform.

People
Luke Lang is co-founder and CMO at Crowdcube, while CEO Darren Westlake and internal legal counsel Paul Massey also worked on the deal. External legal advisers to Crowdcube were Ashford Solicitors. Balderton's Tim Bunting will take a seat on the board of Crowdcube. James Wise is a principal and worked on the deal for Balderton.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Send to  

• Topics
• UK / Ireland
• Financials
• Expansion
• Balderton Capital
• United Kingdom