Hubbub, the Lacemarket-based firm which helps businesses tap into the growing trend of social media and web-based tools for information sharing, worked with RSM Tenon’s corporate finance team to secure the funds.
Hubbub, which set up in 2009, launched an internet application allowing businesses and organisations attract and publish all kinds of ideas and feedback from a wider community.
Mike Quinn and Graeme Gladstone worked on the deal from RSM Tenon. Mike said: “It was a fantastic result to secure bank funding on behalf of Hubbub. We explored the equity route, but were pleased to find RBS so supportive for such a young business.
“This will allow us to pursue the private equity option later, once the model and business is firmly established. Hubbub is a great solution for businesses and organisations who wish to fully exploit the growing trend of social media and we were delighted to work with MD Jason Burrows on this transaction."
The funding was secured under the government’s Enterprise Finance Guarantee Scheme.
Hubbub is already working with many well known names including Boots, Morrisons, the BBC and the government – which are all starting to appreciate the power of tapping into the collective knowledge and experience of their staff, customers and stakeholders, said Mike.
Hubbub MD Jason Burrows said: “We developed the software CrowdWorks two years ago. It’s all about asking people about their ideas, or asking them to vote on something. We have taken the software into companies where they have wanted to tap into people’s ideas and gain more interaction. We know that this is a growth area.
“This funding will help develop the software. Our marketplace is a global one and our next challenge is to see how we can channel our software overseas.
“We worked closely with RSM Tenon throughout the deal and they pointed us in the right direction and helped us broker the deal with RBS. We will continue to work with RSM Tenon as we progress.”
Mike added: “This was a really satisfying transaction and one which could really propel this ambitious young firm into a global marketplace.
“While we would say that bank funding is currently challenging, requiring much higher levels of diligence and analysis, it can still be done. And this is a deal which proves that there is still finance available to the right companies.”
Legal advice came from Berryman.