£500m investment pledged on Crowdcube

Author

UK Business Angels Association

20 August 2018

Crowdcubee has hit the £500 million mark in pledged investment, which has resulted in more than 700 successful raises, for startups to sizeable scale-ups including fintech unicorn Revolut, digital, mobile-only bank Monzo and BrewDog, the British multinational brewery.

One common trait among the growing number of scale-up raises is increased participation by venture capital firms. Six VCs including Balderton and Index Ventures took part in the Revolut raise, Passion Capital contributed to Monzo’s raise, and Draper Esprit participated in a raise for POD Point, the UK leaders in electric vehicle charging.

The majority of pledged investment via Crowdcube’s platform – 60% – comes from high net worth and sophisticated investors, who typically invest larger sums. The platform has also opened up opportunities to everyday investors that have been able to invest in startup, early and growth-stage businesses more easily than ever before. Crowdcube also appeals to investors of all ages; since Crowdcube was founded in 2011, there have been over 40,000 investments worth £21m from the under-30s, and over 25,000 investments worth nearly £60m from those over 60.

Investor behaviours are changing across the platform. Since launching their iOS app and more recently Android, investors have used the apps to invest over £17m in businesses funding on Crowdcube. In addition to these behavioural changes, the levels of sophistication in crowdfunding investor strategy are growing, with the average portfolio on Crowdcube now holding 6 investments.

Through international partnerships with the likes of SeedInvest (USA), as well as the Barcelona office, Crowdcube’s reach is more global than ever as the community outside the UK continues to grow. They have investors from more than 100 countries, and in 2018 so far, over 13% of investments have come from outside the UK. Last year, £6.5m was invested via Crowdcube from non-UK Europe, and that figure has already been exceeded in 2018.

Driving this growing demand from investors is the increasingly diverse range of businesses who are choosing to fund on Crowdcube – from early-stage startups to growth companies with widely-recognised brands. We’re connecting investors with growing businesses across the UK and overseas, in a way never previously possible; that is exactly what Crowdcube set out to do.

 

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