Crowdfunder easily surpassed its 2014 Crowdcube raise this week, securing over £551K with the confidence of over 347 investors. Crowdcube, the UK’s leading investment crowdfunding platform, and Crowdfunder the UK’s #1 rewards and community shares crowdfunding platform have also recently formed a strategic partnership to drive the growth of crowdfunding across the UK, according to a discussion update. The collaboration will see the pair work jointly on a number of initiatives including raising awareness and knowledge of crowdfunding amongst UK fast growth businesses.
“Crowdfunding offers amazing growth opportunities for British business. This collaboration will raise awareness of the different types of crowdfunding to ensure projects get the support they need,” Crowdfunder MD Phil Geraghty shared. “This is an exciting time for the UK’s crowdfunding industry and this further collaboration will help cement the UK as one of the leading players globally in crowdfunding. “
Crowdfunder plans to use the funding to connect more projects to partners by expanding its team across three main areas:
- Business Development Team: We want to launch Crowdfunder Plus, developing partner revenues by doubling the size of our business development team and expanding our London office – close to where many of our partners are based. We will also continue to automate business development with Crowdfunder Plus.This will increase our partner revenue from £483k to £2.75m in 3 years.
- Marketing: To date very little money has been spent on above the line or external marketing. Products like CFLive – our live crowdfunding event and Crowdfunder Now – our superfast crowdfunding app – have much potential. Crowdfunder believes it can help significantly more projects secure the support they need by up-weighting our digital marketing activities.
- Tech: To enable us to integrate effectively with partners through Crowdfunder Plus, we need to build the capacity and skill levels on the tech team. We want to double our tech team to help us deliver more partner revenues and deliver best of breed automation and scalability.This will support our revenue development and profitability.
Geraghty also noted how UBrew exemplifies how the effect of their successful collaboration Crowdfunder initially helped the open brewery raise over £12K from 80 backers. A year later, with their idea validated by the crowd, Ubrew campaigned on Crowdcube and successfully raised over £110K from 125 backers.
“We are excited about the opportunity to work strategically with Crowdfunder. We have already seen how effective the relationship can be in helping smaller and grass roots projects get the support they need,” Crowdcube Founder Darren Westlake remarked on the discussion site. “We hope this will create more opportunities for growing businesses who need additional funding and investment.”
With the support of its online community of over 350,000, Crowdfunder operates in the £1.74B alternative finance sector. Since 2012, the portal has raised over £10 million for thousands of business, social enterprises, charities and individuals and are now profitable and cashflow positive. Also in the news, Beauhurst noted Crowdcube as the top equity investor today. For more information about Crowdfunder and its fundraise on Crowdcube which ends in 26 days, registered invested may click here.
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