Crowdcube Reports Strong Q3 Revenue, Comments on Merger with Seedrs

Crowdcube, the largest investment crowdfunding platform by volume in the UK, is reporting strong Q3 revenues, according to a blog post. Crowdcube said that as the COVID-19 health crisis lingers is marketplace continues to deliver solid results. In Q3, Crowdcube generated top-line revenue of £2.67 million, an increase of 67% versus Q2 – their best quarter ever in terms of revenue.

During the quarter, investors made 88,000+ investments, an increase of 76% in contrast to the previous quarter. Investors pumped £67 million into securities offerings listed on Crowdcube. The quarter saw 57 companies raise capital during the three month period – a slight decline versus the prior quarter. Crowdcube said that 11 issuers raised over £1 million during the quarter.

The following three issuers were the top offerings in Q3:

  • Moneybox – £7.1 million
  • what3words – £7.2 million
  • Chip – £11.2 million

Moneybox saw over 16,000 individual investors back the offering.

Crowcube probably benefited from the UK COVID support program – the Future Fund – a convertible offering where the government matches private money for funding rounds in early-stage firms.

Crowdcube noted that before this quarter Q4 of 2019 (pre-COVID) was its best at £2.3 million in revenue.

Crowdcube added that it intends on leveraging the new harmonized crowdfunding rules approved in Europe. Next year, an issuer will be able to raise up to €5 million across all EU member states – something Crowdcube is well-positioned to pursue.

Crowdcube’s merger with erstwhile competitor Seedrs, announced earlier this month, will create a single dominant private capital marketplace in the UK. The combined firm intends on becoming the world’s largest PE marketplace by pursuing European growth – and perhaps other global markets. The Crowdcube-Seedrs merger should also help the new firm scale and become profitable – 2021 should be a good year for both platforms.


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