Groundbreaking Exeter venture Crowdcube has said it has raised £2.3 million in 'armchair equity', as it marks the first anniversary of its launch this week.

The online business, established by Darren Westlake and Luke Lang from the University of Exeter's Innovation Centre, has more than 8,800 registered investors after its first year of trading.

Crowdcube currently has 38 businesses from across the UK registered on its site and pitching for total growth funding of £6.2 million. It estimates that 246 jobs will be created through the growth funding it generates, in UK businesses over the next three years.

The finance targets range between £12,000 and £1 million, offering total equity stakes of between four and 49 per cent in return.

Individuals who sign up to the site can pledge investment sums starting from just £10. The average amount invested by a single investor is £1,854, while the largest single amount to date is £100,000.

The business generates its own return through charging a five per cent 'success fee' to entrepreneurs who succeed in attracting their desired amount of investment. If this is not met, investors get their money back and no fee is charged.

Crowdcube successfully applied its investment model in December to raise £300,000 for a nine per cent stake, in just 10 days. It was one of eleven successful pitches to have been made to armchair investors, since its launch.

The finance will support the ongoing development of Crowdcube's IT platforms and has enabled the partners to take on four staff.

Crowdcube anticipates that the Government's tax boost for investors via the Seed Enterprise Investment Scheme (SEIS) as well as the "poor performance" of other investment vehicles will serve to generate its own business growth.

Mr Westlake said that there was a growing interest from investors in "Small Business Britain".

He said: "We're seeing a good mix of new armchair dragons and traditional business angels signing up to Crowdcube.

"The more people that invest using sites like ours, the more small businesses will find the finance they need to start-up or grow.

"It's positive to see the impact we're already having on Britain's economy. The emergence of alternative sources of business finance, like crowdfunding, is already proving to be a very effective and popular solution for both entrepreneurs and investors."

The Crowdcube website was approved as a Financial Promotion by Bishop Fleming and its legal framework was developed in partnership with Ashfords LLP.

In November, Crowdcube hosted "the world's largest crowdfunding" event to date, raising £1 million from 143 investors to enable The Rushmore Group to open a fourth members-only venue, The Century Club, in the heart of London.

Among the enterprises currently seeking the support of online angels via Crowdcube is also London based; salad dressing brand Righteous aims to raise 75,000 to fund a major marketing campaign.

Its founder Gina Misa believes that Crowdcube's consumer reach, provides a valuable marketing platform for companies that pitch via the site.

She said: "It is a fantastic opportunity to use the power of the crowd to spread the word and build the brand as well.

"We are finding that the investors we've attracted through crowdfunding are interested for the 'right reasons' – because they simply love our products. So in a way, we aren't just gaining investors, we are gaining a group of supporters who can help tell more people about our products."

Local enterprises currently seeking finance via the website are Okehampton-based Forest Fuels, which aims to raise up to £350,000 to develop its energy services business. And Totnes based Woobiz is offering 20 per cent equity to raise £125,000 to support the growth of its online 'business dating' agency.