This week Ben Goldsmith talks to Luke Lang, who cofounded the world's largest equity crowdfunding platform Crowdcube in 2011 alongside Darren Westlake.
0050 When Luke and Darren set up Crowdcube, there was no blueprint. Nobody has attempted to build an equity crowdfunding platform at such a scale before. We ask why they took such a risk on a new and untried idea, and what it was like to sail into uncharted waters.
0248 Luke explains how equity crowdfunding has increased the level of diversity amongst those who make investments, and shares some stats on the increased level of gender diversity compared to traditional angel investing.
0450 We ask whether the idea for Crowdcube came as a response to the success of reward-based crowdfunding platforms such as IndieGoGo and Kickstarter? Luke explains that it wasn't, and it was a direct response to frustrations with angel investing.
0655 In the early days, it was really difficult to get companies to list on the platform. Now - due to Crowdcube's understandably strict levels of due diligence and scrutiny - entrepreneurs have to beat 1 in 10 odds to even list on Crowdcube.
0930 Equity crowdfunding has created entirely new and original data - The LSE are working with Crowdcube to find out more about investor behaviour.
1000 We asked Luke about a relatively new phenomenon of VC investors pre-loading Crowdcube rounds, and he gives Balderton a pat on the back for trailblazing this phenomenon with our round into Crowdcube!
1115 A deserved hat-tip to record breakers Mondo (who appeared on the Balderton podcast only a few weeks ago), who raised £1m in 96 seconds!
1315 When Crowdcube were starting out, Luke explains how they had angel investors in their crosshairs. As they have grown, they have ended up disrupting VC too...
1420 Luke takes the opportunity to respond to a few misconceptions about crowdfunding. He explains that all investors on Crowdcube have to complete a risk assessment, and that Crowdcube are totally transparent about the level of risk involved. Also, the aforementioned LSE research has demonstrated that the crowd, as a whole, invest in a rational, stable and predictable manner.
1735 Something that interested a lot of people in Crowdcube's most recent investment round was the involvement of Numis, the investment bank. Luke explains that strategic thought that lies behind this relationship.