Cambridge-based stem cell research tool provider Cell Guidance Systems has successfully crowdfunded over £242,000 on equity crowdfunding platform Crowdcube. The raise represents a £2,000,000 valuation. The funds come for a 12.14% equity stake dispersed among the crowd.
CGS was originally seeking $100,000 in funding for a 5% equity stake, but the deal was oversubscribed by 142%. 139 investors got in on the action, investing an average of about £1,700.
The company made use of the Enterprise Investment Scheme, or EIS, a UK tax incentive that mitigates downside risk on behalf of early-stage investors. Since inception in the mid 90’s, EIS has helped generate over £8.6 billion in funding for early-stage UK companies.
CGS was founded in 2010 and aims to provide research tools to scientists and researchers studying stem cell technologies. The funding will go toward investing in marketing, product development, licensing and hiring additional R&D staff.[h/t Startups.co.uk]
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