Crowdcube Claims UK Crowdfunding Crown

Crowdcube is claiming the crown as Britain’s largest crowdfunding platform after raising close to £170 million for entrepreneurs.

The platform wants to press on to raise more money for small businesses and is pressing the European Union to raise crowdfunding finance cap from 5 million euros to at least 10 million euros.

Raising the funding cap is just one of a broad range of proposals to improve crowdfunding in Europe that are before the EU Parliament.

Crowdcube argues that entrepreneurs and investors link crowdfunding with raising money for start-ups, but thousands of established small businesses also want to cash in on the phenomenon.

“We are leading a charge to convince the EU to raise its limit on the amount of finance that any business can raise without a prospectus,” said a Crowdcube spokesman.

Crowdcube by numbers

To show how crowdfunding has developed into a go-to place for business funding, Crowdcube issued a string of statistics:

  • The platform has raised £168 million in 412 funding rounds
  • Crowdcube has around 286,000 active investors with an average £1,900 invested through the platform
  • Businesses attract an average 185 investors to each funding round
  • The crowdfunding success rate is 55%
  • Crowdcube offers funding by a number of ways – loans, mini-bonds and equity
  • Companies that have successfully raised investment with Crowdcube have created an estimated 6,800 jobs

goHenry scoops £4m funding

Pocket money manager goHenry is the business raising the most amount of money on Crowdcube.

The app and prepaid spending card are aimed at helping children and teenagers manage their cash in a digital world.

With 200,000 members and new sign-ups topping 10,000 a month, the web site and app want to spread into Europe and the USA.

With 2,371 investors pledging £3.99 million as a 16% equity stake in the business, the crowdfunding appeal became the largest funded by Crowdcube when outstripping previous top dog JustPark.

JustPark raised £3.5 million. The company provides parking spaces around the UK.

“We’re delighted to give the parents that love our product a chance to be a part of our future success,” said Louise Hill, goHenry’s chief operating officer.

“We were built by parents so it’s only natural that it continues to be owned, managed and grown by parents. As our economies become increasingly cashless, and as purchasing moves online, we want to show children how to manage their money.”

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