Crowdcube raises £8m on own crowdfunding platform

Crowdcube raises £8m on own crowdfunding platform

More than 3,700 crowd investors, alongside venture capital firm Balderton Capital, have collectively invested more than £8million in growth capital for Crowdcube, the equity crowdfunding platform.

This is more than double the previous record for the largest equity crowdfunding raise on a UK platform, also on Crowdcube, of £4m for goHenry in June 2016.

Long-term venture capital backers Balderton Capital invested £1 million in this latest round, in what is its third investment into the fintech company.

Crowdcube will use the finance to realise its growth plans, which are aimed at providing both investors and businesses with opportunities that make investment easy and rewarding. This includes an ambitious move to develop and offer a secondary trading environment on the Crowdcube platform that will give shareholders of any UK private company the ability to sell their stake, if demand exists. 

Darren Westlake continues: "We’ve shown that ambitious later-stage British businesses can raise serious amounts of growth capital on Crowdcube. Our record-breaking £8 million raise, which is the 41st fundraise over £1 million in our history, is yet another watershed moment that will help us execute our plans to pioneer secondary liquidity for investors, whilst facilitating larger rounds to fund the growth of Britain’s ambitious businesses.

This is the fourth time that Crowdcube has raised finance from its crowd, which now stands at nearly 300,000 people. This time the company published a prospectus, which enabled it to raise more than the €5 million limit set by current EU rules. The pitch hit its £5 million target in just four hours and the round closed on just over £8 million.

The average investment made in this round was £1,824, with the largest £1 million, which came from a private investor. 82% of investors ‘came back for more’ after previously backing companies that have crowdfunded on Crowdcube. On average, they hold shares in 7 companies, with an average portfolio value of £5,871.

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