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Mar 16, 2015 · 25m · 20vc

20 VC 020: Revolutionising Investing with Luke Lang, Co-Founder of Crowdcube

Luke Lang · 20m spoken Harry Stebbings · 3m spoken
0:00 / 0:00

gold bands on the timeline = statements, start to end. Hover to read, click to jump. CC turns on captions

In this episode of The 20 Minute VC, host Harry Stebbings interviews Luke Lang, co-founder of Crowdcube, to discuss the growth of equity crowdfunding, navigating financial regulations, and building a hybrid funding model alongside venture capital.

How this conversation actually went

Every chapter scored 0–10 on four independent dynamics. Hover any point for the reasoning behind the score. Harry holds 14.3% of the talking time here. How this is scored →

Harry as informed peer 2.7 Guest teaching 2.3 Guest disagreement 0.6 Harry pushing back 1.1
05100:0010:0020:000:43–3:10 · Harry as informed peer 1/10 Luke Lang's Background and Founding Crowdcube Harry opens with warm introductory questions regarding Luke's entry into technology and the early concept of equity crowdfunding. Luke shares a friendly personal narrative about working with his brother and co-founding Crowdcube with Darren.3:10–5:51 · Harry as informed peer 2/10 Pioneering Equity Crowdfunding and Navigating Regulation Harry asks about the status of equity crowdfunding in 2007 and early regulatory challenges. Luke educates Harry on how Crowdcube pioneered the sector globally in 2011 and worked alongside the FCA to build bespoke industry regulations.5:51–9:19 · Harry as informed peer 3/10 Strategic Value of Investment from Balderton Capital Harry asks whether crowdfunding is a competing model to traditional venture capital. Luke gently reframes the question, explaining that while they win deals from VCs, lines are blurring into co-investments with funds like Index Ventures.9:19–12:05 · Harry as informed peer 3/10 Benefits and Marketing Value of Crowdfunding Campaigns Harry prompts Luke on why companies prefer crowdfunding over VCs and suggests it serves as a marketing engine. Luke agrees and details how community engagement creates brand advocates and post-campaign sales growth.12:05–16:10 · Harry as informed peer 4/10 Core Factors Behind Successful Crowdfunding Campaigns Harry interrupts Luke's general answer about success factors to press on whether pre-product startups can succeed. Luke clarifies that while traction helps, pure business plans have successfully raised substantial capital on the platform.16:10–18:35 · Harry as informed peer 4/10 Integrating Institutional Capital and Government Funding Harry suggests using retail bonds targeted at income funds to bring institutional capital onto the platform. Luke details the strategic tension, warning that large pension funds risk crowding out everyday retail investors.18:35–24:54 · Harry as informed peer 2/10 Quick-Fire Round: Vision, Obstacles, and Standout Startups Harry guides Luke through a quick-fire round covering long-term vision, primary obstacles, and favorite funded startups. Luke outlines his goal for Crowdcube to become the Google of finance and highlights successful alumni like Just Park and Righteous.0:43–3:10 · Guest teaching 1/10 Luke Lang's Background and Founding Crowdcube Harry opens with warm introductory questions regarding Luke's entry into technology and the early concept of equity crowdfunding. Luke shares a friendly personal narrative about working with his brother and co-founding Crowdcube with Darren.3:10–5:51 · Guest teaching 3/10 Pioneering Equity Crowdfunding and Navigating Regulation Harry asks about the status of equity crowdfunding in 2007 and early regulatory challenges. Luke educates Harry on how Crowdcube pioneered the sector globally in 2011 and worked alongside the FCA to build bespoke industry regulations.5:51–9:19 · Guest teaching 3/10 Strategic Value of Investment from Balderton Capital Harry asks whether crowdfunding is a competing model to traditional venture capital. Luke gently reframes the question, explaining that while they win deals from VCs, lines are blurring into co-investments with funds like Index Ventures.9:19–12:05 · Guest teaching 2/10 Benefits and Marketing Value of Crowdfunding Campaigns Harry prompts Luke on why companies prefer crowdfunding over VCs and suggests it serves as a marketing engine. Luke agrees and details how community engagement creates brand advocates and post-campaign sales growth.12:05–16:10 · Guest teaching 3/10 Core Factors Behind Successful Crowdfunding Campaigns Harry interrupts Luke's general answer about success factors to press on whether pre-product startups can succeed. Luke clarifies that while traction helps, pure business plans have successfully raised substantial capital on the platform.16:10–18:35 · Guest teaching 3/10 Integrating Institutional Capital and Government Funding Harry suggests using retail bonds targeted at income funds to bring institutional capital onto the platform. Luke details the strategic tension, warning that large pension funds risk crowding out everyday retail investors.18:35–24:54 · Guest teaching 1/10 Quick-Fire Round: Vision, Obstacles, and Standout Startups Harry guides Luke through a quick-fire round covering long-term vision, primary obstacles, and favorite funded startups. Luke outlines his goal for Crowdcube to become the Google of finance and highlights successful alumni like Just Park and Righteous.0:43–3:10 · Guest disagreement 0/10 Luke Lang's Background and Founding Crowdcube Harry opens with warm introductory questions regarding Luke's entry into technology and the early concept of equity crowdfunding. Luke shares a friendly personal narrative about working with his brother and co-founding Crowdcube with Darren.3:10–5:51 · Guest disagreement 0/10 Pioneering Equity Crowdfunding and Navigating Regulation Harry asks about the status of equity crowdfunding in 2007 and early regulatory challenges. Luke educates Harry on how Crowdcube pioneered the sector globally in 2011 and worked alongside the FCA to build bespoke industry regulations.5:51–9:19 · Guest disagreement 2/10 Strategic Value of Investment from Balderton Capital Harry asks whether crowdfunding is a competing model to traditional venture capital. Luke gently reframes the question, explaining that while they win deals from VCs, lines are blurring into co-investments with funds like Index Ventures.9:19–12:05 · Guest disagreement 0/10 Benefits and Marketing Value of Crowdfunding Campaigns Harry prompts Luke on why companies prefer crowdfunding over VCs and suggests it serves as a marketing engine. Luke agrees and details how community engagement creates brand advocates and post-campaign sales growth.12:05–16:10 · Guest disagreement 1/10 Core Factors Behind Successful Crowdfunding Campaigns Harry interrupts Luke's general answer about success factors to press on whether pre-product startups can succeed. Luke clarifies that while traction helps, pure business plans have successfully raised substantial capital on the platform.16:10–18:35 · Guest disagreement 1/10 Integrating Institutional Capital and Government Funding Harry suggests using retail bonds targeted at income funds to bring institutional capital onto the platform. Luke details the strategic tension, warning that large pension funds risk crowding out everyday retail investors.18:35–24:54 · Guest disagreement 0/10 Quick-Fire Round: Vision, Obstacles, and Standout Startups Harry guides Luke through a quick-fire round covering long-term vision, primary obstacles, and favorite funded startups. Luke outlines his goal for Crowdcube to become the Google of finance and highlights successful alumni like Just Park and Righteous.0:43–3:10 · Harry pushing back 0/10 Luke Lang's Background and Founding Crowdcube Harry opens with warm introductory questions regarding Luke's entry into technology and the early concept of equity crowdfunding. Luke shares a friendly personal narrative about working with his brother and co-founding Crowdcube with Darren.3:10–5:51 · Harry pushing back 0/10 Pioneering Equity Crowdfunding and Navigating Regulation Harry asks about the status of equity crowdfunding in 2007 and early regulatory challenges. Luke educates Harry on how Crowdcube pioneered the sector globally in 2011 and worked alongside the FCA to build bespoke industry regulations.5:51–9:19 · Harry pushing back 2/10 Strategic Value of Investment from Balderton Capital Harry asks whether crowdfunding is a competing model to traditional venture capital. Luke gently reframes the question, explaining that while they win deals from VCs, lines are blurring into co-investments with funds like Index Ventures.9:19–12:05 · Harry pushing back 1/10 Benefits and Marketing Value of Crowdfunding Campaigns Harry prompts Luke on why companies prefer crowdfunding over VCs and suggests it serves as a marketing engine. Luke agrees and details how community engagement creates brand advocates and post-campaign sales growth.12:05–16:10 · Harry pushing back 3/10 Core Factors Behind Successful Crowdfunding Campaigns Harry interrupts Luke's general answer about success factors to press on whether pre-product startups can succeed. Luke clarifies that while traction helps, pure business plans have successfully raised substantial capital on the platform.16:10–18:35 · Harry pushing back 2/10 Integrating Institutional Capital and Government Funding Harry suggests using retail bonds targeted at income funds to bring institutional capital onto the platform. Luke details the strategic tension, warning that large pension funds risk crowding out everyday retail investors.18:35–24:54 · Harry pushing back 0/10 Quick-Fire Round: Vision, Obstacles, and Standout Startups Harry guides Luke through a quick-fire round covering long-term vision, primary obstacles, and favorite funded startups. Luke outlines his goal for Crowdcube to become the Google of finance and highlights successful alumni like Just Park and Righteous.

speaking balance: gold is Harry, purple is the guest (3 minute bins)

0:00 · Harry 25.3% · guest 74.7%0:00 · Harry 25.3% · guest 74.7%3:00 · Harry 10.3% · guest 89.7%3:00 · Harry 10.3% · guest 89.7%6:00 · Harry 15.7% · guest 84.3%6:00 · Harry 15.7% · guest 84.3%9:00 · Harry 9.2% · guest 90.8%9:00 · Harry 9.2% · guest 90.8%12:00 · Harry 18.6% · guest 81.4%12:00 · Harry 18.6% · guest 81.4%15:00 · Harry 7.3% · guest 92.7%15:00 · Harry 7.3% · guest 92.7%18:00 · Harry 14.8% · guest 85.2%18:00 · Harry 14.8% · guest 85.2%21:00 · Harry 8.6% · guest 91.4%21:00 · Harry 8.6% · guest 91.4%24:00 · Harry 25.1% · guest 74.9%24:00 · Harry 25.1% · guest 74.9%
Sharpest disagreement ▶ 7:35 Reframing crowdfunding as complementary to VC

Luke reframes Harry's premise that equity crowdfunding is a direct competitor to traditional VC, explaining that boundaries are blurring and platforms often host joint rounds with VC firms.

 Hardest push from Harry ▶ 12:35 Pressing on pre-product viability

Harry interrupts Luke's generalized answer regarding successful campaign formulas to drill down, demanding to know if pre-product or idea-stage startups can realistically succeed.

 Biggest teaching moment ▶ 16:22 Explaining the risk of crowding out the crowd

Luke corrects Harry's proposal to bring institutional money in via retail bonds, pointing out that large institutional funds could undermine Crowdcube's core mission by forcing out retail investors.

 Harry holds his own ▶ 16:10 Proposing retail bonds for institutional capital

Harry demonstrates capital markets understanding by pitching retail bonds tailored for income funds as a growth mechanism for Crowdcube to tap institutional liquidity.
the scores for every segment, with the reasoning behind each
ChapterTopicHarry as informed peerGuest teachingGuest disagreementHarry pushing backWhy
Luke Lang's Background and Founding Crowdcube 1100 Harry opens with warm introductory questions regarding Luke's entry into technology and the early concept of equity crowdfunding. Luke shares a friendly personal narrative about working with his brother and co-founding Crowdcube with Darren.
Pioneering Equity Crowdfunding and Navigating Regulation 2300 Harry asks about the status of equity crowdfunding in 2007 and early regulatory challenges. Luke educates Harry on how Crowdcube pioneered the sector globally in 2011 and worked alongside the FCA to build bespoke industry regulations.
Strategic Value of Investment from Balderton Capital 3322 Harry asks whether crowdfunding is a competing model to traditional venture capital. Luke gently reframes the question, explaining that while they win deals from VCs, lines are blurring into co-investments with funds like Index Ventures.
Benefits and Marketing Value of Crowdfunding Campaigns 3201 Harry prompts Luke on why companies prefer crowdfunding over VCs and suggests it serves as a marketing engine. Luke agrees and details how community engagement creates brand advocates and post-campaign sales growth.
Core Factors Behind Successful Crowdfunding Campaigns 4313 Harry interrupts Luke's general answer about success factors to press on whether pre-product startups can succeed. Luke clarifies that while traction helps, pure business plans have successfully raised substantial capital on the platform.
Integrating Institutional Capital and Government Funding 4312 Harry suggests using retail bonds targeted at income funds to bring institutional capital onto the platform. Luke details the strategic tension, warning that large pension funds risk crowding out everyday retail investors.
Quick-Fire Round: Vision, Obstacles, and Standout Startups 2100 Harry guides Luke through a quick-fire round covering long-term vision, primary obstacles, and favorite funded startups. Luke outlines his goal for Crowdcube to become the Google of finance and highlights successful alumni like Just Park and Righteous.

Statements from this episode (9)

Assertion Supported
Crowdcube Raised Over £67M for 207 Companies by March 2015
“Crowdcube have raised over sixty-seven million for 207 companies and have an incredible 150,000 registered investors.”
Harry Stebbings Mar 16, 2015 ▶ 0:20
Assertion Contradicted
Crowdcube Was the World's First Equity Crowdfunding Platform in 2011
“Equity crowdfunding, you know, when Crowdcube launched in February, 2011 Crowdcube was the first equity crowdfunding platform, not just here in the UK or Europe, but anywhere in the world.”
Luke Lang Mar 16, 2015 ▶ 3:16
Assertion Supported
Escape the City Rejected Index Ventures to Raise on Crowdcube
“A company called Escape the City, you know, they had two term sheets from VCs, one of them index ventures on the table, and they turned them down and elected to use Crowdcube to raise the money that they were after, you know, that was back in 2012”
Luke Lang Mar 16, 2015 ▶ 7:52
Assertion Supported
Index Ventures Participated in JustPark's Crowdcube Crowdfunding Round
“We've got a company on the site at the moment, Just Park. You know, they've had investment from Index Ventures and BMW in, in the past, and Index are actually participating in this round.”
Luke Lang Mar 16, 2015 ▶ 8:39
Assertion Not checkable as stated
Crowdfunding Campaigns Often Create Post-Raise Sales Boosts for Startups
“We often see, you know, businesses that, that, that raise money on the platform through that heightened exposure and see a real bounce in, in sales after a crowdfunding race.”
Luke Lang Mar 16, 2015 ▶ 11:54
Disclosure
Crowdcube Funded a Startup Raising £400K With Only a Business Plan
“We funded businesses that have been purely business plans. You know you know, a company raised 400,000 pounds last year, and it was, yeah, it was purely a business plan. It was a bloody good business plan but a business plan nonetheless.”
Luke Lang Mar 16, 2015 ▶ 13:05
Assertion Supported
Crowdcube Secured £5M From the UK Government for London Tech Startups
“We recently won some investments from the government, where the, you know, the UK government will be investing five million pounds into businesses through, through Crowdcube for, you know, tech startups in London.”
Luke Lang Mar 16, 2015 ▶ 17:25
Assertion Supported
Crowdcube Funds 10 to 15 Businesses Per Month as of 2015
“We're, you know, we're funding, you know, 10 to 15 businesses per month, which is, you know, just.”
Luke Lang Mar 16, 2015 ▶ 18:04
Disclosure
Crowdcube Raised £1.2M on Its Own Platform Alongside Balderton's £3.8M Round
“On three, three occasions. Yeah, the first time was, you know, 300,000 pounds, then it was 1.5 million, and then most recently where we did it, did a raise with Boulderton Capital, we raised 1.2 million, which topped up the 3.8 from Boulderton and we did that …”
Luke Lang Mar 16, 2015 ▶ 24:05
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