Crowdcube is poised to launch the largest equity crowdfunding round ever on their platform and it is for their own company. Indications of interest have grown steadily during the past week. At last report, approximately £50 million has been registered online by investors who have expressed interest in purchasing shares. While these indications of interest are non-binding, the offer will clearly receive robust investor interest. So much so it appears Crowdcube may be providing an exit opportunity for existing shareholders along with the opportunity for more new shareholders to get in.
According to a tip provided to Crowdfund Insider, Crowdcube is enabling qualifying shareholders the choice to sell shares in the company. The deal is contingent upon several items but it is optional so the decision remains with the shareholder. While it is difficult to determine what type of gain a shareholder would receive, certainly the platform growth has driven the valuation quite a bit higher.
The offer to provide liquidity for existing Crowdcube shareholders appears to be part of a broader strategic push to facilitate other crowdfunded companies to sell shares via a marketplace on the Crowdcube site, so if demand exists “potential returns are not limited to just major exit events such as trade sale or IPO.”
If Crowdcube is able to create a secondary market for a security with limited liquidity (at least currently) this could be an important step in the evolution of investment crowdfunding. With the offer scheduled to go live later this week, we will not have to wait long to find out more.