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AltFi Insights: £71m raised by fintech crowdfunding in 2019 so far
In the past year or so an increasing number of fintech firms have looked to equity crowdfunding to raise capital and boost users.
Fintech firms raising money on equity crowdfunding platforms have netted £71m in 2019, with more than £126m total raised in the past 12 months, according to exclusive research conducted by AltFi.
In 2019 so far Seedrs and Crowdcube accounted for the vast majority of fintech crowdfunding. Seedrs saw 20 fintech deals funded in 2019.
Crowdcube meanwhile says it saw £18,817,795 raised in 2019 across 11 deals including Curve,Nutmeg, Money Dashboard, Freetrade, Hoptroff, Markets Flow, Genuine Impact, CoinMode Ablrate.com, Propio, Fingopay
Looking back over 12 months to the September 2019 the numbers are substantially higher thanks largely to Monzo's £20m bumper round in December from 36,006 investors in December 2018 via its app. Crowdcube partnered with Monzo to execute the raise on their app but it did not appear on the Crowdcube platform.
Crowdcube saw 21 deals raise a staggering £68m (£48m if you extrapolate Monzo) including Monzo,Crowdcube,GoHenry,Chip,Freetrade, WiseAlpha, Coconut, Propifi, Capital, butterwire, Fea, Finanbest over the 12 month period while Seedrs saw 29 fintech deals funded raising £58m
Tom Cannon, Seedrs Portfolio Manager, said: "Having worked with some of the most exciting names in the European fintech scene since our inception 7 years ago, including Revolut,BUX and TransferGo, fintech remains one of the strongest sectors in the Seedrs portfolio. Fintech businesses have discovered that using platforms like Seedrs can help them engage with their customers in a way they haven't been able to previously, as well as use it for customer acquisition."
Luke Lang, co-founder of Crowdcube says the reasons why crowdfunding works for fintechs is its consumers are early adopters of technology, as with Monzo,Nutmeg.
“They are tech-savvy and have a strong sense of purpose that these early adopters - millennials - are very drawn towards. This allowed fintechs to scale, growing very fast and this has quickly spread to other demographic groups,” he said.
Syndicate Room hasn’t really contributed much to the trend. Urban Jungle was its most notable fintech raise. They were part of a £2.46m round, contributing £540k.
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