Investment manager Braveheart has taken the wraps off the first four deals made as part of a tie-up with a crowdfunding website at the start of the year.
The Perth-based firm, which launched the Crowdcube Venture Fund to help “passive” investors back a selection of carefully vetted companies, said one of the first recipients of funding was Crowdcube itself.
Founded in 2010 by chief executive Darren Westlake and chief marketing officer Luke Lang, the website raised £12.2 million for 54 UK businesses and has raised £5m for itself from existing private equity backer Balderton Capital and other investors.
The other companies to have successfully pitched for cash from the Crowdcube Venture Fund are smart meter maker Enistic, upmarket gym operator One Rebel and skincare firm Scaramouche & Fandango.
Geoffrey Thomson, chief executive of Aim-quoted Braveheart, said the firm was “delighted” with the progress of the fund. He added: “In the coming months we will be introducing the fund to new investors.”
The Crowdcube Venture Fund, which aims to take advantage of enterprise investment scheme tax reliefs, has a minimum subscription of £2,500 – much lower than most venture capital funds – as it seeks to appeal to a new breed of backers.
To qualify for investment from the fund, companies must raise at least 33 per cent of their required total through the Crowdcube platform. Braveheart’s Strathtay Ventures subsidiary acts as fund manager.
Westlake said last month that Scotland represented a “big opportunity” for crowdfunding as Exeter-based Crowdcube opened an office in Edinburgh.
“In the next year we would like to fund between ten and 20 companies in Scotland, ” he said.
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