Just three days before its self-running campaign is set to close, Crowdcube announced the initiative is considered the largest raise on a UK crowdfunding platform.
The company launched its highly anticipated campaign last month and within the first 24 hours, the platform raised over £6 million and is now in overfunding mode. Crowdcube was the first equity crowdfunding platform to launch in the UK. Since that point in time, equity crowdfunding platform has secured over £160 million for over 350 businesses. It claims almost 50% of the UK market.
Crowdcube has notably experienced a doubling year on year revenue and is “now ready for the next stage of growth.” The company stated it will use the funds to “pioneer secondary liquidity and target £5.3 billion equity market” as it seeks to expand the portfolio of services the Fintech firm offers.
In the campaign’s recent update, Crowdcube’s team declared:
“Firstly, we’d like to say a huge thank you to the 3,415 people who have invested in Crowdcube. So far we’ve raised over £6.8m from the crowd – making it the largest equity crowdfunding raise in the UK on a platform! Our crowd is at the heart of our business so it’s great to have so many of you join us as we embark on our next exciting phase of growth, alongside Balderton Capital, who have invested a further £1m in this round, and existing backers Numis, DFJ and Draper Esprit.”
Under EU rules, an offer without a prospectus is capped at €5 million. Luckily, Crowdcube filed a prospectus, which is currently available to potential investors, to allow the offer to go far higher than the present £6.1 million. The funding portal noted its desire to set a precedent for other firms seeking a funding round higher than the €5 million hurdle.
The campaign is set to close on Tuesday.
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