One of the major European equity crowdfunding platforms, the UK-based Crowdcube, has raised £8.5 million in funding. The round was led by Draper Esprit, which took a £6 million stake, with participation from Channel 4 and Balderton Capital. In addition to this, on November 14 Crowdcube will launch a crowdfunding campaign on its own platform for everyone to chip in.
In September, Crowdcube announced that it had facilitated more than 100 funding campaigns of £1 million or more, including those of Monzo, Revolut, BrewDog, Adzuna, and more. In total, more than £355 million has been invested in more than 600 companies through the platform.
“We've transformed equity finance and funded more businesses than anyone else in the UK to become a preferred choice for British entrepreneurs,” said Darren Westlake, CEO and co-founder of Crowdcube. “This latest investment, from two highly-regarded venture capital investors who are significantly increasing their stakes in Crowdcube and a famously forward-thinking media company, is fantastic proof of our progress and potential. It will enable us to accelerate our journey to profitability and expand faster in the UK and overseas, so we can help more innovative and ambitious businesses from across the globe grow, expand and make a difference to the world.”
Although not yet profitable, Crowdcube reported that it achieved a record revenue of £1.6 million in Q3'2018, which increased 60 percent year-on-year. The annual revenue is forecast to reach £6 million this year, compared to £3.9m in 2017 and £3.6m in 2016.
The crowdfunding platform plans to run its first TV advertising campaign next year to support its growth in the UK. It also wants to keep expanding in the US — according to a press release, “through its operation based in the UK and Spain, and via an exclusive partnership with leading US crowdfunder, SeedInvest, more than 90 overseas businesses have successfully raised on Crowdcube.”