Crowdcube Opens New Scottish Office Due to Region’s Startup Growth

Equity crowdfunding platform Crowdcube announced this week the launch of its new office in Scotland. According to the Herald Scotland, the website revealed it has made opened the new location to support existing clients.

Crowdcube noted the decision to move north came after it noticed a strong growth in the number of new businesses being established in Scotland. While some have taken advantage of crowdfunding, others have continued to use the traditional funding methods.

Darren Westlake CEO CrowdcubeCEO of Crowdcube, Darren Westlake stated, “Scotland has a very strong entrepreneurial and investment culture, but there has been no strong crowdfunding presence in the region until now.Scottish companies are no different to any other startup in looking for ways to finance their business – and like any other business, they have found it increasingly difficult to raise money through traditional routes like banks during recent tough economic times.”

“Investors are also a key target for us. But it’s interesting to see that although the passion for investment is there – according to YouGov on in five of those who would consider investing in a British startup would stump up between £2,000 and £5,000 – crowdfunding is not an obvious choice at the moment.We need to change this and make crowdfunding a serious alternative.”

The new office will be based in Edinburgh’s Silicon Walk and will be headed up by investment manager of Scotland and North of England. It will support existing customers, including Lanarkshire-based Plan Bee, which is an eco-business that offers managed beehive services. 

Warren BaderCEO of Plan Bee, Warren Bader shared, “As a startup business, you have to think much more creatively nowadays about how you plan to raise money – the usual routes are often closed off to companies like us and alternative methods like crowdfunding are easily within our reach.”

“While many businesses have yet to embrace the concept, it’s a very simple one. Small businesses are the lifeblood of our economy – they generate opportunities, investment, and jobs in the region and the industry should be doing everything it can to encourage them to grow and succeed.”

Crowdcube has reportedly helped raise more than than £37 million for 145 pitches over the past three years.

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  • Rob Murray Brown

    Dont suppose Crowdcube will mention the most recent high profile failure – where all 164 investors lost all their money. So I will – Front Up Retail is an interesting case for would be investors to study. It raised £250k in two goes on Crowdcube, never managed to meet any of its sales targets despite apparent rigorous stress testing by both the comnay and Crowdcube. It was effusive about its desire to look after shareholders best interessts. So it burned all the cash – the two directors lifting £120k of it as ‘salary’. When the cash was finally running out, the MD did a back door pre packed deal with Lyle and Scott and the administrators which gave him a full time job, gave the stock at LS and they also kindly paid off his business loan. O/S creditors stood at £350,000. All of this was arranged without any recourse to the shareholders. Other recent Crowdcube failures include Seek and Adore which lasted under a year, Ovivo which Crowdcube hailed as Business of the Year and the £1m Waterbabies the Musical which has sunk without trace. To date not one penny has been returned to investors. But hey, dont forget you only lose half your investment – the other half is paid for by the tax payer.

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