Members of the public have invested more than £250m via Crowdcube, the crowdfunding website has announced.

The milestone comes after a number of businesses funded through the site have been sold, leading early investors to pocket huge gains.

Crowdfunding websites encourage members of the public to fund businesses or projects but unlike rival sites, where funding is often rewarded with an early version of a product, Crowdcube lets people buy equity, giving them the chance to sell their shares at a higher price.

Businesses to feature on the site include Camden Town Brewery, the craft beer producer sold to drinks giant ABInBev and E-Car Club, sold to Europcar in 2015. Both returned more than three times the crowdfunders’ original investments.

Co-founder Luke Lang said the company had funded 500 deals since 2011 and that Guanqun, a Chinese investor, had recently backed the company with £1m. He said 17pc of funders on the site had seen a return so far.

According to figures from Beauhurst, the company was involved in 10pc of all equity investments in the UK in the first quarter of this year.