Personal Development Bureau, a Croydon-based business for returning services personnel into the workplace after their tours of duty, has become the second company to fund itself through investment network CrowdCube. It raised £25,000 from armchair dragons, some of whom may have put in as little as £50.
The company raised the money by pitching through CrowdCube, which acts as an aggregator for small investors who want to invest in startups.
The idea of CrowdCube is to enable people who would otherwise not be able to get at capital to raise it for their businesses without going into debt. Everyone who invested in the company will be issued with shares; these may rise or fall in value depending on how the business performs in future.
PDP gave away 15% equity in order to get at the funds. It claims that since 34,000 police and up to 75,000 members of the armed forces are expected to lose their jobs over the next three years there has never been a time when it's more urgent to help assimilate them into jobs.
It will offer mentoring and training, partly through a network of experts who have become investors as well through this scheme.
DailyFinance and indeed I personally wish to declare that the writer is on this occasion also a participant in the story by dint of putting a little money into PDP through CrowdCube.