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Crowdcube [2021]
Finance and Risk Capital
Impact for scaleups
928
Companies backed
23%
Follow-on investments
45%
Investments outside of London
367
Growth-stage investments
Key sectors
Crowdcube invests in UK companies and has offices in Exeter and London.
Online equity crowdfunding platforms, on which businesses pitch to receive investment, have become an established conduit for finance among seed, early-stage and scaling businesses, bridging the gap from family and friends funding rounds and later, larger institutional rounds. The institutionalisation of equity-based crowdfunding continues as VC firms, professional and retail investors co-invest on and with the platforms.
While the average amount raised on the platform is £800,000, with funding available as equity investment or mini-bonds, the size of investment rounds has increased in the past year. Since January 2014, there have been 367 growth stage investments made into UK companies. In the second quarter of 2021, the platform held several of its largest-ever fundraisings – for banking platform Curve, transport app Citymapper and battery metals business Cornish Lithium.
Food and drink companies, mobile apps, internet platforms and e-commerce have been the most popular sectors among companies raising finance on the platform. Notable scaleups to have repeatedly used the Crowdcube platform to access equity finance include what3words, BrewDog, Monzo and Revolut.
The platform provides companies that raise funds via the platform with access to a help centre and a campaigns team, access to a network of founders, and support with marketing and investor relations. Recently, it has launched Cubex, a secondary marketplace to enable retail investors to buy and sell shares in high-growth private European companies. This reflects the maturing age, size and profile of companies raising capital via Crowdcube.
