Crowdcube – No longer an ‘Alternative Financier’ as amount invested through the platform exceeds £500m

5th September, 2018

My colleague is excited about Crowdcube presenting at our breakfast event next week – The future of funding for Food and Drink businesses. He has long followed the progress of crowdfunding for businesses and is extremely pleased that one of the main players in the crowdfunding equity sector, and arguably mainstream business finance, is based in this region.

Crowdcube – some facts and figures

As most people already know, Crowdcube is a crowdfunding platform that seeks to help entrepreneurs and small businesses raise much needed finance. Crowdcube is not a reward or debt based platform and in return for their money investors are given an equity stake in the business they’re investing in.

Headline figures:

  • Since its foundation, the company has expanded to become the largest platform for equity crowdfunding on the market with over £500m invested in pitches
  • Some figures taken from their website shows 2017 was a very good year for funding with over 120,000 investments made and a total of £90 million successfully invested in 148 businesses
  • The platform also has an international reach with over €8.3 million invested in 23 non-UK based companies

Basic requirements and costs:

You can apply if
  • The business is a UK or Irish limited company (not an LLP or Sole Trader)
  • The business isn’t involved in anything of a sexual nature, property development or filmmaking/theatrical productions
  • The business has a valid, active Companies House number
Minimum and maximum raise
  • The minimum raise is £50,000
  • No limit to the maximum
Costs
  • There is no fee for listing your business
  • A success fee of 7% (exc. VAT) is charged on the amount you successfully raise
  • An average completion fee of 0.75% -1.25% is also applied on all funds raised

More information on how you can obtain funding through Crowdcube can be found at their website.

Equity crowdfunding and the Food and Drink sector

Next week’s breakfast event was prompted by three developments in and/or affecting the local food and drink producers:

  1. Increased demand for product – including for export
  2. Cessation of a number of grant schemes – historically a source of expansion funding
  3. Popularity and accessibility of Crowdfunding to businesses in the sector

Points 2 and 3 have been covered in slightly more detail in a previous blog found here, as was point 1 in another blog found here.To book on to our breakfast event next Tuesday (4 September), details of the event can be found here.

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