UK-based crowdfunding platform CrowdCube has long been a global leader in the equity crowdfunding space. Recently the platform met a huge milestone: over £10 million in equity raised for startups and small businesses in the UK.
CrowdCube has a dynamic infographic that updates regularly, and it includes a wealth of statistics and information on the platform. Click here to view the infographic.
Today’s banking system is outdated. It doesn’t give early stage small businesses and start-ups access to the funding they need to grow and drive the desperately needed economic recovery. Even when the banks do offer to lend, the interest rates and other terms and conditions are often crippling. It’s no wonder more businesses are finding funds through alternative finance sources such as Crowdcube. We’re pleased to have raised this much money so early in our own growth phase.Luke Lang, CrowdCube
As CrowdCube celebrates this important and impressive milestone, investors are reminded of the risks of investing in early-stage companies. Beauty startup Bubble & Balm recently closed its proverbial doors. It was the first company to crowdfund for equity on CrowdCube.
As reported by This Is Money, Bubble & Balm raised £74,000 at a valuation of roughly £500,000 on CrowdCube soon after the platform launched. The company’s aim? To be the first 100% fair-trade body care company in the UK.
CrowdCube co-founder and director Luke Lang said that although failure is a sad reality of entrepreneurship, investors shouldn’t see it as a reason not to participate in this new form of capital formation. Rather, he preaches pragmatism and diversification.
The news is a blow for crowdfunding. Every business that fails is a deep disappointment and very sad. But ultimately it is part of the nature of investing in start-ups. What happened to Bubble & Balm is a good example of the need for people to diversify their portfolios and spread their money around. Around 55 per cent of angel investments fail to get a return. But overall as an asset class you can make a get 2.2 per cent return as long as you do diversify correctly.Luke Lang, Crowdcube via This Is Money