The owner of some of London’s best loved bars, The Rushmore Group, satisfies its thirst for expansion with record crowdfunding investment.
The Rushmore Group, owner of three members’ clubs in London, today secured £1 million investment from 143 investors to fund the development of an exciting new venue in the heart of London, early next year. The investment, raised in only four weeks through the equity crowdfunding website Crowdcube, sets a new record for the largest amount of money raised using a crowdfunding website.
The Rushmore Group was founded in 2001 and is the well-established owner and operator of three members’ bars and clubs in London – Milk & Honey and The Player in Soho and Danger of Death on Brick Lane. The Group raised the growth finance through the Crowdcube web-based crowdfunding platform in return for 10 per cent equity.
Jonathan Downey, founder and director of The Rushmore Group said: “We are delighted to have successfully reached our £1 million target on Crowdcube. Crowdcube is a powerful new way to raise business finance and this investment wouldn’t have been possible without its innovative platform. The Group’s immediate aim is now the acquisition, refurbishment and launch of a new site in Soho, London.”
The investment sets a new record for the largest amount of money raised using a crowdfunding website anywhere in the World. The previous record set by a project on US-based crowdfunding giant Kickstarter, which raised $942,578, was easily beaten by The Rushmore Group’s £1 million ($1,579,550) raise on Crowdcube.
Crowdcube is the first crowdfunding website to enable the general public to invest and receive shares in UK-based companies that register on the site to raise finance. Instead of competing for limited business angel or venture capital funding or hard to get and expensive bank finance, small businesses use Crowdcube as a platform to connect with a nation of Armchair Dragons’ – ordinary people who provide investment in exchange for equity.
Darren Westlake, co-founder and CEO of Crowdcube said: “Raising £1 million for a single business on Crowdcube is a fantastic achievement but not a surprise to us. We firmly believe that raising finance using crowdfunding will transform the way businesses raise capital in the future. With over £1.4 million successfully raised on Crowdcube for British businesses since July 2011, we are bucking the trend and proving that there is now an alternative way to raise business finance in the UK.”
The Rushmore Group becomes the sixth deal to be completed on Crowdcube since July 2011 with successful investments now totalling over £1.4 million. The website has approaching 6,000 registered members who are seeking investment opportunities.
Small businesses and investors can sign up to Crowdcube for free. Entrepreneurs can register their business idea or company at www.crowdcube.com and only pay a fee when they successfully hit their investment target.