Crowdcube has reportedly returned to growth in 2024 following a challenging year in 2023.
In filings with Companies, full accounts covering 2023 revealed a troubling picture. For 2023, Crowdcube generated revenue of £7,549,480 and an operating loss of £6,650,910. In 2022, revenue was reported at £14,416,45. Crowdcube also noted it had closed its operations in Sweden to focus efforts elsewhere.
Crowdcube is one of Europe’s leading crowdfunding platforms operating in the UK and approved under EU ECSPR rules. Over the years, it has enabled retail investors to acquire shares in some of the UK’s most prominent Fintechs, including Revolut, Monzo, Moneybox, Freetrade, and Chip.
In a blog post by Seb Johnson, Crowdcube’s financials for FY2024 were revealed:
- £10.1m of annual revenue (+33% YoY)
- Profitable for the entire second half of 2024
- Delivered just under £1m EBITDA in the fourth quarter
2024 was said to be a solid year for secondaries, which benefited the company. Crowdcube made more secondary share sales this past year than combined in the previous ten years.
The company also reported steady investor growth:
- +163,927 new investors (56,168 of these, 34%, were added in Q4)
- Of the 56,156 new registered investors in Q4, 60% are based in the EU
Overall, Crowdcube has dealt with the challenges that the technology market contraction brought and has bounced back. These issues were impacting UK startups as well as European firms due to economic challenges affecting business operations worldwide. However, the present situation is still challenging for high-growth firms in the UK and nearby jurisdictions.
At one point, Crowdcube attempted a merger with competitor Seedrs. While the combination made sense due to the extensive competition in venture markets, the UK Competition and Markets Authority took a dim view of the combination. For some reason, the CMA simply did not understand private capital markets. In the end, Seedrs was purchased by the US-based Republic, thus gaining a global partner and enabling access to a large market. It is now rebranded as Republic Europe.
