A financial services firm has increased its cash pot to £235,000 after using its own crowdfunding platform to attract investors.
Growth Capital Ventures, a financial services and technology business based in Newton Aycliffe, County Durham which develops and operates online funding and investment marketplaces, last month launched a bid to raise £150,000 to drive its growth plans.
That target was smashed within just 10 minutes of the launch – and now the business has gone on to raise an additional £85,000 towards its plans
It received 54 investments, ranging from £100 to £25,000, using its equity crowdfunding and co-investment platform, GrowthFunders.
The co-investment nature of GrowthFunders allows a new generation of online angels to invest in businesses alongside experienced angel networks and institutional investors, such as venture capitalists.
Growth Capital Ventures’ existing network of investors had been awaiting the launch of the listing and backed the company as soon as the pitch went live, ensuring they were fully-funded within minutes.
The huge level of support led to the firm keeping the listing open, going into overfunding and allowing others to get involved.
Craig Peterson, chief operating officer of Growth Capital Ventures said: “We were absolutely delighted with the response we received when we went live and there is no doubt that the success of the opening minutes triggered a ripple effect which encouraged others to get involved.
“We have released 15.7% equity in the business and the extra capital raised in this seed round allows us to accelerate our growth plan over the coming months.
“Every investment, from those who put in £100 to a syndicated investment of £75,000, is hugely appreciated. It will help support business growth and job creation across the UK.”
Norman Peterson, chief executive officer of Growth Capital Ventures added: “The great thing about offering this opportunity through the GrowthFunders platform is that new, suitably-experienced investors can also get involved from as little as £100, investing alongside and on the same terms as experienced angel networks and VCs, with the added benefit of receiving up to 78% tax relief.
“We are proud to be leading the way with this co-investment platform and are excited to see how the online alternative finance environment evolves. It has been fantastic to demonstrate the power of this model with our own fundraise, and we are already seeing the industry sitting up and taking notice of what we are doing.”