The social network gaming company, gamesGRABR, has successfully raised more than £450,000 through 221 investors in its second round of funding on Crowdcube.
The game company has smashed its original target of £250,000 by over 80% and has also received funding from the London Co-investment Fund (LCIF) - the first technology company to do so.
The LCIF launched late last year to invest £25m in London-based seed stage companies within the Technology, Digital and Science sectors over the next three years. The fund includes a number of investment partners with Crowdcube as the only crowdfunding platform selected and is managed by Funding London and supported by the London Enterprise Panel, which is chaired by the Mayor of London, Boris Johnosn.
The LCIF has co-invested £100,000 to the amount raised by gamesGRABR via crowdfunding – the first time the public fund has co-invested alongside ‘the crowd’ – bringing the total amount raised on Crowdcube, through individual investors and the LCIF to £454,000.
GamesGRABR allows users to play, share, discover and buy games via the platform and is looking to become the biggest social network for gamers, Tony Pearce, CEO of the technology company said:
“We are so proud of this latest round of funding and the attention gamesGRABR has attracted. Our unique approach of creating a community ‘by gamers for gamers’ who want to be part of our growth along with key investors has been incredible. With this new funding round we can begin to scale up our global PR and marketing efforts plus add to our successful partnerships with vgloggers on YouTube. Our vision is to be the biggest social network for gamers, the place to find everything you love about gaming and this funding will set us well on the way.”
The new funding will be used for marketing, which Pearce says have been minimal thus far, to help grow the user-base and scale the business, as well as for product development — including a new gamification system which will reward users when someone plays or buys a game from their collection — with the aim of making the platform more sticky.
Luke Lang, Co-founder of Crowdcube commented:
“We were honoured to be selected as the only crowdfunding partner for the London Co-investment Fund and proud that the first investment via the Crowdcube platform has raised well over its original target,”
“It’s testament to the success of gamesGRABR that the LCIF chose it as an investment opportunity and we’re delighted that gamesGRABR chose once again to raise money via Crowdcube. With £5m of co-investment allocated to Crowdcube, we are keen to help more of London’s finest technology start-ups benefit from LCIF over the next 12 months.”
Maggie Rodriguez-Piza, CEO of Funding London said:
“Crowdfunding is becoming an increasingly significant avenue for funding technology businesses and we are delighted to support gamesGRABR and Crowdcube in this funding round.”
GamesGRABR initially raised more than £175,000 on Crowdcube a year ago, overfunding on its original target of £150,000. Since its launch in 2010, the company has grown rapidly and secured major deals with retailers like Apple, Amazon and GAME.