Crowdcube has launched a Sprint Programme, to allow startups to secure up to £150,000 in seed capital.
The initiative will allow smaller businesses to raise money for products and services, rather than the larger organisations that set up campaigns on the investment network.
Crowdfunding rounds for those in the programme will start at £20,000 and will be available up to £150,000, ensuring that the SEIS tax subsidy will continue to attract all investors.
It will ensure smaller businesses can raise funds quicker than was previously possible and it’s cheaper for them to raise such high levels of funding than other ways of raising capital via crowdfunding.
Crowdcube’s co-founder, Luke Lang, said: “One in every five businesses is a pure start-up, accounting for £19 million of the funded total. We want to continue building on that track record of success with a streamlined process to make raising finance even more accessible for budding entrepreneurs who want to turn their business idea into a reality.”
Lang referred to the case of The Pressery, which used the Sprint Programme to raise the £150,000 it needed in less than two hours. The company produces healthy, almond milk drinks that are stocked in stores across the UK including Selfridges and Daylesford Organic.
One of The Pressery’s co-founders, Natali Stajcic said: “We are delighted with the response from Crowdcube members towards our pitch and can’t quite believe we reached our target in under two hours. The Sprint Programme appealed to us because we felt very ready for the next phase of our business and it pushed us to get there quickly.”
According to research from Beauhurst, seed stage funding increased from five per cent to 30 per cent between 2011 and 2014, meaning there’s certainly an appetite for these early stage companies. The research firm said the reason for this jump was the growing opportunities in seed funding as more platforms have launched.
