Investment crowdfunding platform Crowdcube has defied post-Brexit gloom by receiving up to £50 million in pledges in its latest round of fundraising on its own site. That is 10 times as much money as it originally hoped to raise.
The investment opportunity is now live with £5 million coming through in a mere two hours as interested investors rushed to get involved.
The company plans to use the cash to offer more investment opportunities in venture and growth-stage businesses.
It also wants to create a secondary market so it is possible for shareholders of any private UK business to sell their stake. This would mean potential returns are not limited to major exit events or IPOs.
The equity crowdfunding platform's net revenue doubled from over £1 million in the first quarter of 2015 to more than £2 million in the same period of 2016.
Crowdcube says its revenue rose due to more invoiced and bigger transactions, resulting in a higher commission per transaction.
Investors are advised to tread carefully as Crowdcube is in a competitive space and is likely to compete with companies holding greater financial and technological resources.
Chief executive Darren Westlake, who co-founded the business with Luke Lang (pictured), says: 'With more growth stage and venture capital-backed businesses turning to our crowd to raise finance, there is a real opportunity to provide early investors with returns through a secondary market on Crowdcube.'
Since Crowdcube’s equity crowdfunding debut in 2011, it has attracted 285,000 members, which have invested over £160 million in hundreds of raises for businesses such as burrito chain Chilango and craft beer outfitCamden Town Brewery.