Crowdcube saw revenues grow 50 per cent and pledged investment shoot up 72 per cent in 2018, according to the firm, which says the numbers are record figures, and that the last three months of 2018 was its most successful quarter to date.
The firm says revenue in 2018 rose to £6m, from £4m in 2017, while investment pledged to growing companies through the platform is up to £224m, from £130m the previous year. The number of successful raises on the platform, at 198, is 35 per cent higher than the previous year’s total of 147.
In July 2018 the regulations for crowdfunding were relaxed, allowing companies to raise up to €8m without producing a prospectus, compared to the previous limit of €5m. Companies which took advantage of the new rules included Mr & Mrs Smith and gohenry.
Founded in 2011, Crowdcube has raised a total of £625m for firms. Looking ahead to 2019, Crowdcube’s team believes businesses raising funds on its platform are likely to concentrate on AI to personalise consumer offerings, fintech companies offering insurance tech and investor intelligence, cannabis companies, craft distilleries, cleantech companies, companies that produce medical tech and smart home tech for the elderly, consumer healthcare and wellness companies, and companies working in robotics, drones, vegan products and esports.Luke Lang, co-founder of Crowdcube, says entrepreneurs at larger companies are opting to raise equity capital through crowdfunding.
“Entrepreneurs increasingly understand that a Crowdcube round not only raises funds, but builds their brand and communities, which are crucial to the success of new businesses in these digitally-connected times.”