Matt Cooper, Crowdcube
Crowdfunding platform, Crowdcube, has joined forces with law firm, Harper Macleod, to target what they believe is still an untapped market of Scottish businesses that could benefit from equity crowdfunding.
Since it was established in 2011, Crowdcube has funded 17 Scottish businesses, raising £19.8m in the process. In 2017 the numbers were £1.7m for three businesses. However, this represents only 6% of its UK market, leaving Scotland lagging behind other parts of the UK when it comes to businesses taking advantage of crowdfunding.
Through the partnership, both organisations will co-operate to ensure equity crowdfunding is considered as part of the funding mix for an increasing number of Scottish growth businesses.
Companies working with both Harper Macleod and Crowdcube can save on the overall cost of conducting their crowdfunding campaign. The partnership will also see the duo raise awareness through a series of events across the country.
A launch event being held in Glasgow tonight will highlight Scottish equity crowdfunding success stories as well as new opportunities.
Crowdcube CCO Matt Cooper, who is speaking at the Glasgow event, said: “Whilst Crowdcube has helped fund a number of businesses in Scotland, including Ellon-based BrewDog, we think there is a huge opportunity to further support businesses in the country. We’re looking forward to working with the Harper Macleod team to broaden the funding opportunities for entrepreneurs across Scotland."
Crowdcube has over 500,000 crowd investors and the market capitalisation of its 630 successfully funded businesses is more than £390m. Last year alone it helped raise more than £87m for 133 businesses across the UK.
Matt Cooper added: "There's a huge opportunity here and this is the first step in making sure that Scottish businesses do not miss out."
Harper Macleod is recognised as one of the leading advisers to early stage and high-growth businesses in Scotland with a particular specialism in ensuring that those looking for funding are 'investor ready'.
Paula Skinner, a partner in Harper Macleod’s Corporate team, said: “We've been impressed by Crowdcube's success rate for businesses seeking funding and we know they are committed to bringing more of this success to Scottish growth businesses. That's why we're delighted to announce this official partnership.
"Over the past five years when we've been involved in crowdfunds for our clients, the market has matured – you can see this in the figures which show Crowdcube is now the number one source of Series A level funding in the UK.
"Crowdfunding is now a vital part of the funding mix and something we make sure our clients consider. Having this close relationship with Crowdcube will benefit all the people we work with within Scotland's entrepreneurial ecosystem and I believe it's another positive step in the constant push to helping our businesses scale-up to the next level."