Crowdcube, an equity crowdfunding platform, is partnering with Episode 1, backers of Zoopla, Shazam and carwow, to invest in the next generation of infrastructure and deep tech startups in the digital sector.
This partnership will see the GBP100 million fund, which has invested in the likes of Ori, Webiny and CloudNC, back businesses from this space alongside retail investors on Crowdcube.
Selected businesses will have their pitch reviewed by Episode 1 and be considered for investment, ahead of a funding round on Crowdcube. To qualify for initial consideration, the businesses will need to be registered in the UK and looking to raise between GBP250,000-GBP3 million.
Following the outbreak of Covid-19, the role of technology amidst the crisis took centre stage. Businesses sought solutions for better supply chains, tools for remote working and cloud-based virtual care; digital infrastructure was challenged, and the importance of enabling innovation highlighted. There is a growing appetite for investment in this space with high-growth SaaS companies raising around GBP7 billion in finance since 2011.
Businesses funded through this new partnership will follow in the footsteps of disruptive brands such as Bidstack, Intelligence Fusion and Fidel UK, all of whom previously raised finance on Crowdcube. Fidel UK completed their $18m Series A at the end of 2019, helping power their mission to turbocharge innovation by making the payments infrastructure more accessible to developers.
Simon Murdoch, Managing Partner of Episode 1, says: “B2C businesses are easy to understand, so they tend to get more coverage than B2B businesses, particularly those which are more specialist. What we’ve found is that a large number of IPOs in the US are B2B. In 2018-2019 there were six times as many IPOs for B2B than there were for B2C businesses. Sectors that are lacking in competition, like software infrastructure and deep tech, are good areas for investors to look into.”
Made up of expert entrepreneurs, the team at Episode 1 invests in B2B software businesses which have the potential to be billion-pound companies.
Matt Cooper, Chief Commercial Officer, Crowdcube, says: “Crowdcube is delighted to be partnering with Episode 1 on our hunt for the startups building software infrastructure that’s enabling change. Developments in API-driven technology, open-source tech and analytics software are now more important than ever. We recognise this potential and want to give everyday investors the opportunity to be a part of their future success.”
Applications are open from today and will close on 30 October. Selected businesses will stand the chance to receive investment from both Episode 1 Ventures, and through an equity crowdfunding campaign on Crowdcube.
