By Luke Lang

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.

“I'm very much looking forward to working with all our investors as we take Bubble & Balm to the next level. Some of our new shareholders have already offered their skills as well as their cash to support our growth, and this is another huge benefit of crowdfunding - not only do we now have the investment we need to deliver against our plans, we also have a diverse team of supporters (and customers!) too.”

Darren Westlake, co-founder and Managing Director of Crowdcube said: “This is a significant moment in the history of small business finance in Britain. In the current climate with banks being risk averse, we are thrilled that Bubble & Balm has succeeded in getting vital growth investment. This is just the start. Many entrepreneurs on Crowdcube are on the verge of achieving their funding targets using our crowdfunding model. I firmly believe that Crowdcube is the future of business finance in Britain.”

There is no cost for entrepreneurs to sign up to Crowdcube. Crowdcube receives a five percent success fee. If the target funds are not met, investors get their money back and no success fee is charged to the entrepreneur. Start-up ventures can register their business idea or company at www.crowdcube.com.

About the author

Luke Lang is Marketing Director at Crowdcube. Crowdcube provides a platform for entrepreneurs of start-ups and growing businesses to connect with potential investors. Dedicated to helping UK-based entrepreneurs raise finance to start or grow their business, Crowdcube is the world’s first crowdfunding website that gives investors real equity in the companies they fund. Crowdcube uses the web-based notion of ‘crowdfunding’ where a community of like minded people pool their money and knowledge together to back an idea, business or person.

The Crowdcube website is approved as a Financial Promotion by Bishop Fleming – an FSA authorised company. The legal framework was developed in partnership with Ashfords LLP.

www.crowdcube.com  

Other businesses on Crowdcube

• Personal Development Bureau wants to raise £50,000 to fund the growth of its mentoring, training and support services that help people who are facing redundancy, job loss or early retirement to pursue a new career path or set up their own business. The consultancy works for many ex Forces personnel and wants to expand its virtual business model to meet increasing demand. The company is already at 38% of its investment target.

• Kammerlings is a new kind of lower-proof alcohol drink made from 45 botanicals that is gaining rave reviews in the top hotels and bars around the country including London’s top nightspots such as Hakkasan and Claridges. This family run business seeks £180,000 for 23 percent equity to fund expansion in its second year of trading.

• Big Barn is the leading local food organisation with a mission to build a better, more local, food industry, as an alternative to the supermarket. This start-up already has more than 6,700 local food producers and small retailers as icons on its local food map that are accessed by typing in a post code. It also has an online marketplace where 400+ producers have shops selling 6,500 products. Big Barn is seeking investment of £60,000 in return for 20% equity and a number of other benefits.

• Aberdeen based White Van Ads wants to speed up growth of its outdoor advertising business that pays white van owners around the UK and parts of the USA to carry vinyl wrap advertising for other businesses. It wants to raise £50,000.