Average amount raised by businesses on Crowdcube increases 40% in 12 months
Crowdcube, one of the UK’s leading equity crowdfunding platforms, reports another year of growth as the amount raised by businesses has increased by more than 50% to £86m in the 12 months to 30 September 2016.
Luke Lang, co-founder of Crowdcube, said:
“We have seen an increase in the number of raises year on year as investors back great British businesses on Crowdcube. The significant rise in the average amount raised by crowdfunding businesses reflects the shift towards more venture and growth stage, often VC-backed, businesses turning to Crowdcube to raise finance alongside startups looking for seed investment. This is a trend we expect to continue; we have a robust business pipeline and investor appetite remains strong.”
The 10 largest fundraises completed on Crowdcube in the year to 30 September 2016:
1. Crowdcube – £6.7m
2. goHenry – £4m
3. Chilango – £3.4m
4. One Rebel – £3m
5. eMoov.co.uk – £2.6m
6. Pocket Land (Bond) – £2.5m
7. Witt Energy – £2.4m
8. BrewDog (Bond) – £2.3m
9. GripIt Fixings – £2m
10. Hochanda – £2m
Following the first exit by E-Car Club to Europcar in July 2015, Crowdcube has seen two further businesses being sold in the last 12 months with Camden Town Brewery to AB InBev and Wool and the Gang to BlueGem Capital. Against a backdrop of a growing number of businesses raising on Crowdcube, the number of businesses to fail post funding remains low, with 94% of all the businesses that have pitched for finance on Crowdcube since it launched in 2011 still trading.
Luke said:
“The investment crowdfunding industry is still in its early days when compared to more traditional institutions, so it’s a promising sign that businesses have already delivered over £5m in returns to investors on Crowdcube.”
In the last year Crowdcube saw over 90,000 people join its platform and has now amassed over 300,000 registered members. Innovative technology companies continue to stimulate the most interest from investors with almost half of the businesses pitching falling into this category. Other leading sectors include food and drink, retail and professional services, with around a third of successful raises having a B2B element to their business.
