Crowdcube, a leading European investment platform, is promoting the overall returns generated by investors. The crowdfunding platform recently tweeted out a link to a page that outlines some of the issuers that have created positive returns for its investors.
According to Crowdcube, “over 50,000 investors have had the chance to realise more than £60m in returns from investments made with Crowdcube.”
Crowdcube itemizes some of the names that had good outcomes, including the following:
ZigZag Global: acquired by Global Blue – a 38X return on investment
Nutmeg: acquired by JP Morgan Chase – a 2.3X return
Revolut: Secondary by DST – a 19X return
E-Club Car: Acquired by Europcar – a 3X return
Contract Pod (NewGalaexy): Acquired by Insigth Venture Partners – a 30x return.
There are others on the list.
Crowdcube shares that while only 6% of funded issuers have generated an exit, a sold 80% are still trading with 14% of issuers no longer in business. Since its inception, Crowdcube reports that of the 1,038 businesses funded in the last ten years, 833 are still trading, and 60 have delivered financial returns to their shareholders through exits, bond repayments, and dividends.
Crowdcube also operates a secondary trading platform called Cubex that allows investors a path to liquidity prior to another exit event such as a merger or acquisition or a public offering.
As everyone understands, investing in early-stage ventures entails a good amount of risk but, of course, no investment is risk-free (except government bonds perhaps). Individual investors must weigh their tolerance for risk before they back an early-stage firm as many offerings will not generate outsized gains as some will bounce along and others may fail. But that is how capitalism and a market economy works. Crowdcube is creating the opportunity for individual investors to gain access to the private security marketplace.
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