Crowdcube has raised an additional £6m, taking its total value up to £51m, the platform has announced.
The funds, contributed by stockbroker Numis, Tim Draper, his London-based VC firm Draper Esprit and existing backer Balderton Capital will allow Crowdcube to launch IPO investment opportunities so investors are able to back companies that are about to go public, rather than sticking to the startup and early-stage companies.
“We’re on a mission to help more businesses raise the finance they need to grow, create jobs and deliver returns to investors,” Darren Westlake, CEO and co-founder of Crowdcube said. “We’ve dominated the democratisation of seed-stage equity investment since we launched in 2011 and we’re determined to do the same for larger businesses. We want to put the Public back into IPO.”
Numis has extensive experience working with IPOs and will bring the expertise the crowdfunding platform needs to bring its plans into fruition. It will directly liaise with regulators to ensure high-growth businesses planning to go public are able to list shares on the London Stock Exchange’s Main Market or AIM for purchase by individuals.
Oliver Hemsley, CEO and founder of Numis said: “Numis has a long track record of helping companies access funding for growth and this investment in Crowdcube will put Numis at the centre of the entire investment chain, from initial start-up capital all the way to IPO.
“We are very excited to be part of an innovative fintech solution to help the public markets evolve and connect retail investors directly with fast growing businesses.”
Crowdcube will use the money to take on more staff, ramp up development of its site and expand its marketing spend to create awareness around both IPO investments and its existing bonds, funds and VC round business models.
Westlake added: “Our goal is to solve the funding continuum for ambitious, high growth businesses; delivering seed-capital right through to IPO. We have a proven track record of disrupting the status quo. With high calibre new investors joining the team who share our vision of widening companies’ access to capital, this new round of funding puts us in a very exciting position.”