This week Crowdcube became the first UK investment crowdfunding platform to surpass the £100m volume milestone. Since Crowdcube launched in mid 2011 it has helped 285 businesses to successfully raise finance on the platform from some of its 200,000 registered users. Over half of this amount has been financed in the eight months of this year. Crowdcube’s dominance of the UK equity crowdfunding volumes is underlined by its market share. AltFi Data estimates that Crowdcube’s market share is just under 50% this year, making it by far and away the biggest equity crowdfunder in terms of volume of deals done.
Of the £100m total financing raised, £9.2m came in the form of Crowdcube’s mini-bond offerings, which have provided six companies with over £1m of debt financing each.
Crowdcube’s average (mean) deal size is increasing as the platform reports more VC-backed businesses raising finance through Crowdcube. The platform has successfully presided over no fewer than nine £1m+ equity raises since the turn of the year.
Commenting on the milestone, Darren Westlake, CEO and co-founder of Crowdcube explained: “Funding more than £100 million from our growing investor community of 200,000 are significant landmarks for investment crowdfunding. They clearly demonstrate how Crowdcube has the biggest and most active investor community in the world.”
Westlake added: “Enabling people to invest in some of Britain’s brightest companies, alongside world-renowned venture capital firms and acclaimed angel investors, on Crowdcube is now commonplace. Crowdfunding is now sitting alongside venture capital, angel investing and traditional debt financing as a mainstream channel for funding rather than an ‘alternative’.”
With some of the big campaigns (such as the Brewdog equity and debt offerings) that are currently live on Crowdcube, AltFi Data fully expects the platform’s rapid growth to continue. If the platform continues growing at the same pace, we project that Crowdcube will originate a further £30m of financing by the end of the year, cementing its place as the UK’s largest equity crowdfunding platform.