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.
CEO 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.
CEO 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.