Matt Cooper is Commercial Director at Crowdcube – one of the world’s leading investment crowdfunding platforms. As of August 2016 the company had successfully raised a staggering £184,619,905 and helped to support some impressive case studies that are now household names, the likes of Camden Town Brewery, E-Car Club and goHenry. In the latest edition of A View from the Shapers, Changers & Money Makers, Matt discusses Crowdcube’s position at the forefront of the crowdfunding market and the trends emerging in the sector.
Crowdcube, the world’s first equity crowdfunding platform, came into existence just five years ago and is now recognised as a mainstream funding option. In that short time we have amassed a crowd of 286,000 members that have invested more than £184 million to date. The investment has helped more than 400 businesses raise start-up or growth capital.
Whilst still a relatively nascent industry, recent trends have shown that crowdfunding has well and truly come of age. Rather than being a last resort, the lending model is now the first choice for businesses seeking investment. We’re seeing a growing number of more established growth-stage businesses turning to the crowd to raise finance. Another emerging trend is the increase in the average amount being raised, with crowdfunding now forming part of Series B fundraises alongside leading venture capital firms on a regular basis. Recent examples include JustPark, which had previous backing from BMW iVentures and Index Ventures; Mondo, whose first funding round was with Passion Capital; and eMoov, which is backed by Episode 1 and Maxfield Capital.
More recently, we saw goHenry raise £3.99 million, the 38th business to raise more than £1 million on the platform. goHenry, a digital banking solution that aims to make kids smarter at managing money than their parents, is the latest in a wave of innovative fintech firms raising finance on Crowdcube.
A growing number of professional investors, VCs, angels and institutions are investing in businesses on Crowdcube. It’s a move that shows that some parts of the traditional finance sector are not shying away from crowdfunding and represents a shift towards the old and new funding models collaborating rather than competing.
Visit the Crowdcube blog for more industry news, research and updates.
Matt Cooper | Commercial Director