First business raises £75,000 equity finance on Crowdcube
Award-winning bodycare business Bubble & Balm hits funding target of £75,000 on Crowdcube.
Crowdcube, the first crowdfunding website in the world to offer investors equity in small businesses, has successfully helped Fairtrade bodycare business Bubble & Balm raise £75,000 of growth capital.
Bubble & Balm is the first British business to raise finance using the equity based crowdfunding model that was launched by Crowdcube earlier this year. Bubble & Balm, based in Warwickshire, sought £75,000 of growth finance through the Crowdcube web-based crowdfunding platform in return for 15 per cent equity in the business. Eighty-two investors each contributed between £10 and £7,500 to meet the funding target. The Fairtrade bodycare business required investment to expand its award-winning product range, increase marketing activity and to meet increasing demand from retailers such as Waitrose, Oxfam, Planet Organic and a growing number of independents.
Crowdcube makes access to finance easier for entrepreneurs of newly formed and growing small businesses. Instead of competing for limited business angel or venture capital funding, businesses can use Crowdcube as a platform to connect with a nation of small investors, ‘armchair dragons’, instead of one or two high net worth individuals to find investment.
Former city banker, Sue Acton, founder of Bubble & Balm, said: “I am absolutely delighted we have achieved our target. Raising finance is incredibly tough for any small business – Bubble & Balm included – and I was really excited when I first heard about Crowdcube.
The idea of pitching our business to a wide range of people, ranging from armchair dragons looking to invest £10 through to more traditional investors with thousands to invest, was really appealing. As well increasing our chances of raising the funds, I also liked the fact that the Crowdcube model fits really well with what Bubble & Balm is all about – working directly and fairly with communities and all our partners to achieve a shared success.
Entrepreneurs can showcase their business and investment potential to thousands of micro-investors by uploading a ‘dragons’ den’ style video pitch, images and supporting documents. Spreading the word about a pitch is made easy via Facebook, LinkedIn and Twitter sharing links on their dedicated Crowdcube webpage.
People can support an idea, person or business by investing small amounts of money – from as little as £10 – in exchange for shares in the business.
Entrepreneurs can register their business idea or company at www.crowdcube.com