Last fall, equity crowdfunding platform Crowdcube announced the launch its new office in Edinburgh, Scotland. The new location was help support existing clients in the region and due to the strong growth in number of new businesses being established in the country.
CEO of Crowdcube, Darren Westlake explained:
“Scotland has a very strong entrepreneurial and investment culture, but there has been no strong crowdfunding presence in the region until now. Scotland 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 YouGove one in five of those who would consider investing in 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.”
Now, nearly 8 months later, Crowdcube announced that Scottish startups have raised £1.5 million total on its platform. According to the Scotsman, the funds have come from five successful pitches since the opening of the dedicated Scottish office. Two others raised funds prior to that launch. The website’s bosses have stated they have been “overwhelmed” by the interest shown by businesses and investors.
Craig McKenna, who heads up Crowdcube’s Scottish office, told the media outlet that the figures showed that “the appetite for crowdfunding in Scotland is huge.” He then stated:
“We’ve been overwhelmed by the interest shown by both businesses and investors, and our success so far is only the tip of the iceberg. There is a great start-up ethos in Scotland at present, and, working closely with partners such as law firm Harper Macleod, we’ve been able to tap into this community and the results are clear to see. Every one of these successful pitches is a great company and I believe there are many more like them north of the Border.”
Luke Lang, co-founder of Crowdcube, then added:
“We launched in Scotland due to its strong entrepreneurial culture. It’s clear that our investor community has relished the opportunity to back Scottish businesses and with a growing number of businesses from the area looking to raise finance on the platform, we’re keeping up with demand.”
Have a crowdfunding offering you'd like to share? Submit an offering for consideration using our Submit a Tip form and we may share it on our site!