If you are interested in equity crowdfunding in the UK, you must have heard of Crowdcube. Crowdcube UK has been growing steadily since its launch in 2011, and today it is one of the largest equity crowdfunding platforms.
As partners of Crowdcube UK, we want to give you a full review of the platform. So, join us as we dive into the world of Crowdcube.
Who Are Crowdcube UK?
Crowdcube is an equity crowdfunding platform established by Darren Westlake and Luke Lang. The company headquarters are in Exeter and they have offices in London, Cardiff and Spain.
As the company puts it, a firm belief in entrepreneurs who dream big and want to make a difference stands behind the creation of Crowdcube. Crowdcube’s mission is to make equity investments accessible. They also want to make it easier for progressive-thinking companies to raise investments.
Crowdcube is regulated by the FCA and claims to give business owners more control and access to a bigger investor audience. It works with two shareholder models – direct ownership and nominee structure. However, it also offers a combination of the two, allowing businesses to choose the model that suits them best. Check out the table below to learn more about each shareholder model.
You become the owner of shares in a company after investing in it. This model allows businesses to establish a stronger relationship with their investors.
Under this model, Crowdcube is the legal owner of the shares, but you hold all economic benefits from those shares. The platform handles the share administration.
So far, Crowdcube has:
- funded over 770 businesses ;
- raised more than £220 million (2017 data);
- attracted more than 340,000 investors .
Evidently, the platform is a clear leader in the UK equity crowdfunding market. 657 (or 85%) of the 770 Crowdcube-funded companies are still trading. In comparison, a report by the Office of National Statistics shows that 50% of new UK companies fail after as little as three years .
According to Crowdcube, 26% of all businesses who raise funds through the platform are startups, 46% are early-stage companies, while 28% are businesses already in a growth stage .
Crowdcube UK - No 1 investor in 2018
In 2018, Beahurst’s report The Deal pronounced Crowdcube UK’s top investor. According to the report, investors have supported 76% more businesses that raised on Crowdcube than the platform’s closest competitor, Seedrs. The report also states that in Q4 alone, Crowdube facilitated as much as 64% of all equity crowdfunding investment, thus claiming a market share of 53% for 2018.
The same year Crowdcube passed a new milestone by completing more than 100 raises over £1 million. 32 of them happened in 2018 alone. Entrepreneurs invested on Crowdcube across as much as 17 sectors, with FMCG, FinTech and consumer goods being the most preferred.
Crowdcube UK - Success Stories
Crowdcube UK has supported a staggering 770 UK-based and foreign businesses over just 8 years. Some of those businesses’ crowdfunding story has been such a success that we have decided to familiarise you with them. Below are some of Crowdcube’s biggest success stories.
You might have heard of Monzo. It is the UK’s fastest-growing bank, having over 2 million customers and an outstanding 200,000 new sign-ups per month. The company’s partnership with Crowdcube began in early 2016 when Monzo raised £1 million in record-breaking 96 seconds.
Monzo turned to Crowdcube UK for their second raise in 2017. They passed their second crowdfunding round with flying colours, raising £2.34 million with the support of 6,400 investors.
The bank’s third and most successful raise with Crowdcube was in 2018. Monzo launched their crowdfunding campaign on 15 November 2018, raising a mind-blowing £20 million in just a few days .
Founded in 2012, UK fintech startup GoHenry aims to help children learn how to manage their allowance by providing a prepaid card. The innovative company has a community of 500,000 users in the UK and the USA. The Sunday Times TechTrack 100 also ranked GoHenry the 8th fastest-growing British tech enterprise in 2018.
GoHenry chose Crowdcube to host their crowdfunding campaign in September 2018. The startup raised as much as £10 million in two investment rounds, thanks to the support of more than 3,000 investors .
Established in 2011, Grind is one of the most exciting and fastest-growing hospitality brands in London. They are an award-winning group of 11 central London locations combining coffee, cocktails and amazing food to a killer beat.
Grind have raised three times with Crowdcube. Their very first crowdfunding campaign was held in 2015 and was a great success – over 440 people helped Grind raise £1.3 million.
In 2017, Grind’s held their second campaign on Crowdcube. It was even more successful than the first one, as more than 1,000 investors joined to help them raise £1.9 million.
Their latest crowdfunding journey was in March 2019, when the brand raised a staggering £3.4 million with the help of over 1,600 investors .
Crowdcube UK - Conclusion
The final verdict? Crowdcube is the ideal candidate to choose for hosting an equity crowd fund. What is more, the crowdfunding market is predicted to show an annual growth rate over the next few years. So, Crowdcube will most likely remain among the top crowdfunding platforms for UK-based businesses.
Considering a fundraising campaign on Crowdcube or Seedrs? We can help.