Draper Esprit has taken a £6m stake in Crowdcube as part of a funding round that also saw Channel 4 and Balderton Capital invest a total £8m.
The funds will be used to help accelerate growth and continue its drive towards profitability in 2019, Crowdcube says. It will also launch its first national TV advertising campaign in 2019 to increase brand awareness and accelerate growth across the UK following Channel 4’s involvement (through its Commercial Growth Fund).
Jonathan Allan, Channel 4’s Chief Commercial Officer, said: “Crowdcube is the perfect fit for Channel 4’s Commercial Growth Fund investment. We both share a desire to support emerging talent and disrupt the status quo. This innovative business is powering the next generation of brilliant entrepreneurs all across the country and energising the investors who want to back them."
The round marks Balderton’s fourth and Draper Esprit the second investment in Crowdcube. The latter invested its initial investment in 2015.
Again, the public will have the opportunity to invest through a crowdfunding campaign, which will publicly launch on 14 November and will supplement the institutional investment.
Crowdcube saw a record quarter for revenue for Q3 2018, reaching £1.6m, an increase of 60 per cent on the same quarter last year.
In the same period, investment pledged through the platform increased by 97 per cent (£50.4m vs £25.6m). The past year’s growth has been helped along by high profile raises from the likes of Monzo, Mr & Mrs Smith, Revolut and BrewDog.
Since launching 7 years ago, Crowdcube has raised over £355m for more than 600 businesses onits platform since 2011.
Crowdcube is forecasting annual revenue growth to £6m in 2018, up from £3.9m in 2017 and £3.6m in 2016.
Darren Westlake, CEO and co-founder of Crowdcube, said: It will enable us to accelerate our journey to profitability and expand faster in the UK and overseas.
Simon Cook, CEO of Draper Esprit, said: “Crowdcube has demonstrated significant progress and impressive growth in the last 12 months. They have a proven and scalable platform, seven years of unrivalled experience, strong brand awareness and a clear market opportunity in the UK and abroad."
