By Oliver Smith on Thursday 6 May 2021
“A big part of the future of our business,” CEO and co-founder Darren Westlake tells AltFi.
Crowdcube is today launching a brand-new secondary marketplace, and extending an invite to all high-growth European startups to come and use it.
Called Cubex, the new marketplace has already been used to facilitate over £16m in secondary share sales for fintechs like Freetrade and Revolut, but is now being opened-up for non-Crowdcube startups to use.
“Our aim is to have a European marketplace that allows venture-backed and high-growth companies from all over Europe to be able to trade their shares,” Crowdcube’s CEO and co-founder Darren Westlake told AltFi.
“This has been in-demand from companies and from investors for years.”
It could be a huge potential new revenue stream for Crowdcube and the companies, with Westlake saying that the buyer and seller in a trade would both be charged a fee for trading their shares.
“We charge the investor 1.5 per cent, and then we'll charge the seller a small percentage as well, depending on the type of transaction. It's likely to be a similar kind of fee on both sides,” the CEO added.
“I think that [Cubex] will be the future of our business... a big part of the future of our business.”
“The idea is to really focus on Crowdcube becoming a marketplace, and enabling shares to be traded of all different kinds.”
To kick off demand, Westlake said Cubex has built a database of private European high-growth startups where Crowdcube customers can register their interest in buying or selling equity.
With that data, Cubex hopes to be able to demonstrate where there is enough liquidity for a company to offer a secondary market sale through its platform, with pricing based on recent valuation data plus market demand.
It’ll then be up to those companies to decide whether to pursue a secondary sale, but returns could be lucrative.