Crowdcube is in the midst of a self-crowdfunding round seeking an initial goal of raising £5 million. In the first 24 hours, the platform raised over £6 million and is now in over-funding mode. As it stands now, over 2450 investors have invested in the offer which includes a £1 million commitment from Balderton Capital (separate from the offer page). The pre-money valuation of Crowdcube was pegged at £65 million.
Crowdcube was the first equity crowdfunding platform to launch in the UK back in 2011. Since that point in time, Crowdcube has raised over £160 million for over 350 businesses. They claim almost 50% of the UK market. Crowdcube experienced a doubling of year on year revenue and is “now ready for the next stage of growth.”
Crowdcube said the use of funds would be used in part to “pioneer secondary liquidity and target £5.3 billion equity market” as it seeks to expand the portfolio of services the Fintech firm offers. Crowdcube will intensify their focus on driving returns for investors, not just by providing an online exchange but by moving downstream by focusing on later stage companies.
The pitch page states;
“We want to dominate the UK equity investment market for private companies, estimated to be worth £5.3bn, and become the partner of choice for investors and ambitious high growth companies.”
Under EU rules, an offer without a prospectus is capped at €5 million. Crowdcube has filed a prospectus, available to potential investors, to allow the offer to go far higher than the present £6.1 million. Crowdcube stated its desire to set a precedent for other firms seeking a funding round higher than the €5 million hurdle. There is a movement in Europe to increase this cap to €10 to €20 million.
Crowdcube offered investors the ability to register indications of interest, similar to the Testing the Waters (TTW) method used in Reg A+ in the US, prior to committing to purchase shares in the company. Before the offer went live, approximately £50 million in interest was tallied.
The UK has been at the forefront of Fintech innovation. The sector has been propelled by a strong entrepreneurial culture and a government supportive of innovation. Crowdcube has become one of the iconic leaders of the Fintech revolution.
Have a crowdfunding offering you'd like to share? Submit an offering for consideration using our Submit a Tip form and we may share it on our site!