Later-stage and overseas businesses help to fuel 36% increase in 2019 revenue
First-time Crowdcube’s revenues cross £8m mark, to reach £8.22m
Crowdcube doubles investments into overseas businesses, rising to €27m
Record number of businesses racing past £1m target
Record number of campaigns funded at 220
Crowdcube reaches 1,000th raise, thanks to electric vehicle company, Andersen EV
Crowdcube, Europe’s leading crowdfunding platform, has achieved its eighth record-breaking quarter in a row, as revenue for 2019 surpasses the £8m watershed for the first time. Revenue is up 36% year-on-year, climbing to £8.22m, with a record 220 campaigns funded, up from 198 in 2018.
Crowdcube saw 41 campaigns raising over £1m in 2019, with JustPark, Freetrade, Curve and carwow each raising £5m or more. Curve, carwow, Chip and Freetrade jointly welcomed over 30,000 new shareholders. A trend towards larger funding rounds has been spurred by entrepreneurs understanding the benefits of engaging their customers and communities by inviting them to become shareholders through Crowdcube.
Internationally, it’s been a breakthrough year for Crowdcube. Investment into overseas businesses doubled from 2018 to 2019. Spanish fintech ID Finance raised a record €5.2m, making this the top overseas campaign, which was followed by shoe company Muroexe with €2.8m and challenger bank Bnext, whose 4,415 new shareholders invested €2.6m. The European Commission is finalising new crowdfunding regulations, which are expected to boost the industry and make access to capital easier for businesses.
Luke Lang , CMO at Crowdcube said, “What a phenomenal year of growth, we’ve helped fund more ambitious businesses than ever before, which has fuelled another record year for revenue at Crowdcube, topping £8m for the first time. Strong growth from overseas campaigns and a trend toward larger funding rounds is very encouraging for 2020 and beyond. It’s wonderful to see forward-thinking businesses of all sizes wake up to the benefits of building an army of brand champions and evangelists from their communities with Crowdcube.”
Crowdcube was reported as the top crowdfunding platform for amount invested into UK businesses in Beauhurst’s The Deal 2019 report, published on Tuesday 11 February. Crowdcube helped raise £125m for UK businesses in 2019, which was 26% more than its nearest competitor. Beauhurst also noted that 2019 was the ‘busiest year on record for these platforms’ with 424 deals by UK businesses involving crowdfunding platforms.
Crowdcube’s top five businesses by funds raised in 2019
- JustPark, £7.1m (€8.0m)
- Freetrade, £5.72 (€6.5m)
- Curve, £5.3m (€6.3m)
- carwow, £5.0m (€5.7m)
- ID Finance, £4.6m (€5.2m)
Crowdcube’s top three sectors remain constant, with fintech at No. 1, followed by food and drink and consumer goods. Fintech businesses raised £37.1m, food and drink £18.8m and consumer goods £18.4m. Crowdcube was also the best way for female-led businesses to raise funding, head and shoulders above angel investing, private equity and corporate finance. Notable female founders raising on Crowdcube in 2019 were Louise Hill, Co-founder and CTO of gohenry, Sofia Fenichell, CEO and founder at Mrs Wordsmith, Emma Ash, co-founder of YoungPlanet and Vanessa Tierney, CEO and Founder of Abodoo.com.