Apparently the seed investors who participated in the equity crowdfunding round of E-Car Club made a good investment selection. E-Car Club raised £100,000 on Crowdcube early last year for 20% equity in the business. 63 original investors backed this small startup that is a wholly electric, pay by the hour, car club. Founded in 2011, the company combines the growing popularity of pay per use with the reduced cost of fuel by using electricity. The UK’s first electric car club also received some backing from a socially minded angel investor.
Just recently announced E-Car Club, has secured £500,000 of funding from Ignite Social Enterprise LP, the social impact fund backed by Centrica. E-Car Club is the first to secure follow-on finance after successfully raising £100,000 seed investment via Crowdcube. The additional funding will allow the startup to deliver access to lower cost transport solutions and add up to twenty new locations.
Christopher Morris, Co-Founder of E-Car Club, said;
“The E-Car mission is a simple, if ambitious, one. We want to improve mobility on a local level whilst simultaneously reducing both the cost and environmental impact of each journey taken,” explains. This new funding provides us with the capital to extend our operations and we look forward to launching hubs across London and the South East during 2014.”
Chairman of E-Car Club, Andrew Wordsworth stated;
“We’re delighted that Ignite is also bringing a package of support to underpin our expansion plans. We are grateful for the confidence that our existing crowdfunding and angel investors have shown in the business. Today’s announcement would not have been possible without their initial investment. We are very pleased to have more than doubled our share price over the last year while also delivering social benefits within local communities.”
Crowdcube co-founder and CEO Darren Westlake commented on the new financing round;
“We’re so pleased for Andrew and the team at E-Car Club. We’ve always known that crowdfunding won’t stop institutions investing in great businesses. This deal shows the idea that institutions won’t invest in businesses that have multiple, smaller investors is simply not true.”
The company was originally valued at £500,000. This funding round means that those Crowdcube shareholders have seen their shares in E-Car Club double.
Now not every startup will experience growth and success like E-Car Club, but it is encouraging to see positive results from some of the very first equity crowdfunded companies in the world.
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