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Crowdcube expects the trend of growth stage or VC-backed businesses seeking crowd equity to continue




By Lisa Walls-Hester on 28th October 2016


Crowdcube reports another year of growth as the amount raised by businesses has increased by more than 50 per cent to £86m in the 12 months to 30 September 2016. The average amount raised by businesses on Crowdcube has increased 40 per cent in 12 months.

 

Other reporting highlights include:

 

●     137 raises completed funding in the year to 30 September 2016 compared to 127 the previous year.

●     The average amount raised by businesses was £627,000 (2014/15: £449,000).

●     The number of companies raising over £1m doubled from 11 to 22.

 

Luke Lang (pictured above), co-founder of Crowdcube, said: “We have seen an increase in the number of raises year on year as investors back great British businesses on Crowdcube. The significant rise in the average amount raised by crowdfunding businesses reflects the shift towards more venture and growth stage, often VC-backed, businesses turning to Crowdcube to raise finance alongside startups looking for seed investment. This is a trend we expect to continue; we have a robust business pipeline and investor appetite remains strong.”

 

 The 10 largest fundraises completed on Crowdcube in the year to 30 September 2016:

 

1.      Crowdcube – £6.7m

2.      goHenry – £4m

3.      Chilango – £3.4m

4.      One Rebel – £3.0m

5.      eMoov.co.uk – £2.6m

6.      Pocket Land (Bond) – £2.5m

7.      Witt Energy – £2.4m

8.      BrewDog (Bond) – £2.3m

9.      GripIt Fixings – £2.0m

10.    Hochanda – £2.0m

 

Following the first exit by E-Car Club, which was bought by Europcar in July 2015, Crowdcube has seen two further businesses sold in the last 12 months: Camden Town Brewery to AB InBev and Wool and the Gang to BlueGem Capital.

 

Against a backdrop of a growing number of businesses raising on Crowdcube, the number of businesses to fail post funding remains low, with 94 per cent of all the businesses that have pitched for finance on Crowdcube since it launched in 2011 still trading.

 

Luke Lang added: “The investment crowdfunding industry is still in its early days when compared to more traditional institutions, so it’s a promising sign that businesses have already delivered over £5m in returns to investors on Crowdcube.”

 

In the last year, Crowdcube saw over 90,000 people join its platform and has now amassed over 300,000 registered members. Innovative technology companies continue to stimulate the most interest from investors with almost half of the businesses pitching falling into this category. Other leading sectors include food and drink, retail and professional services, with around a third of successful raises having a B2B element to their business.

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