It took some convincing for Claus Lindorff to launch a crowdfunding campaign. That type of financing, he knew, is generally used by start-ups that are soliciting friends and family to help the business get off the ground.However, things changed when he started researching Crowdcube, the U.K.’s largest crowdfunding site. Crowdcube, which was founded in 2011, has raised more than 1.4 billion pounds for more than 1,300 businesses and has more than 1.
His goal was $1.5 million, a figure he hit after 12 hours. Ultimately, he wound up raising $2 million. The minimum investment was 50 euros, or around $60, Lindorff said, but some people invested as much as 75,000 euros, or nearly $100,000. All told, 400 people participated in the crowdfunding, 70 percent from the U.K. and France and 30 percent from the rest of the world, he said. Customers in the U.S. were not allowed to participate.
Taking investments from customers is similar to having shareholders in a public company and Lindorff said there are several benefits. According to the Crowdcube site, anyone investing 50 euros will receive regular business updates. Anyone investing 150 euros or more receives 15 percent off all purchases.
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