Equity crowdfunding platform Crowdcube has teamed up with industry partners in an initiative to increase the flow of investment to startups and growth businesses in the United Kingdom’s regions.
Announcing the plan on March 29, Crowdcube set itself an ambitious target of doubling investment via the platform to the regions within five years. To deliver on its goal,, the platform has joined forces with six partners, namely: investment growth Fund, BGF: business advisors, G by Grant Thornton and Virgin Startup; law firm Harper MacLeod; crowdfunding agency, IdeaSquares; proof of concept and grant specialist Techstart Ventures; and
Working With Partners
With the technology and investor community already in place, Crowdcube is focusing on the companies themselves, offering help and advice with their fundraising campaigns. “We share a belief with our six partners that the combination of technology, networks and regional funding expertise offers a powerful way to boost SME growth in the regions. Working as a team, we will engage with regional SMEs, advising them on their suitability for crowdfunding and co-investment, share information appropriately, and work with them to help them launch funding rounds on our platform,” the company said in a statement.
While crowdfunding – along with platform lending – has increased the options for businesses, here is undoubtedly a regional imbalance when it comes to investment. For instance, when London & Partners – the agency charged with promoting the capital – published data on equity investment into the tech sector, the figures revealed that while the UK as a whole attracted £2.99bn, the bulk of the investment (£2.45bn) went to London.
More generally, the UK Business Angels Association, says that 75% of equity investment falls within the ‘golden triangle’ of London, Oxford and Cambridge. For its part the UKBAA has stepped up its own campaign to promote growth companies in the regions through the establishment of Angel Hubs, where investors can meet each other, access resources and meet companies in need of funding.
Crowdcube has to date facilitated funding deals for more than 600 companies, collectively raising £400m.