Crowdcube’s record breaking 2016 ends with largest ever UK crowdfund raise
New record set by BrewDog’s £10 million raise completed on Boxing Day
It has been a great year for one the biggest crowdfunding platforms in the UK. Crowdcube has grown to becoming the place most startups or established businesses go to raise equity with the support of people who love their brand.
Crowdcube finished 2016 on a high with a new record after BrewDog raised £10 million via a bond issue on the platform, making it the most money raised on a funding platform in the UK. The record, which was broken three times in 2016 by funding rounds on Crowdcube, also pushed the total amount successfully invested into businesses on the platform, since it launched in 2011, to £210 million.
Luke Lang, co-founder of Crowdcube said, “2016 was another standout year for Crowdcube and the wider crowdfunding industry. Despite the economic uncertainty, we’ve continued our history of record-breaking and finished the year with our best quarter yet, with over £15 million having been invested through the platform in December alone, investment is up 20% in the six months post-Brexit. Our investor community has now topped 340,000 and we’ve seen more than £265 million pledged through Crowdcube to date; both are clear signs that investors’ appetite to back innovative and ambitious businesses remains strong.”
Over 51,000 investments were made through Crowdcube in 2016, successfully raising more than £80 million for startup, early and growth stage businesses from the UK and Europe. As s startup, Crowdcude is one of the first places to look when seeking investment, but also remember that with the investment comes responsibilties, which is thoroughly detailed before joining the platform and uploading your pitch.
With more established businesses raising finance on Crowdcube, such as Biscuiteers, Innis & Gunn and Vivobarefoot, the platform has seen the average funding round increase to £642,000, up from £550,000 in 2015. goHenry, a fintech trailblazer, was the first businesses in 2016 to set a new record for the largest crowdfunding round after raising £4 million in April. The record was then broken by Crowdcube’s own funding round, which saw £7.7 million raised from over 3,500 people who invested alongside Balderton Capital, one of Europe’s largest investment firms.
BrewDog, one of the UK’s fastest growing food and drink brands, was the final company to take the title of the largest raise after it reached its £10 million target in just three weeks. More than 2,700 people invested in the BrewDog Bond, which will pay 7.5% interest per annum. The average investment was £3,600 and the largest £200,000.
It's a great time for startups to get the ball rolling or grow and already established business. Investors can take a business from one point to the next, due to more than just funding, sometimes knowledge and experience is needed more than the financial input. Before putting your pitch up on Crowdcube, remember to do your research, find out how much you would like to give away and what you would like to give away, For smaller investments, some people, such as Authors, may give away a signed copy of their book, plus many other options based on what they have to offer.
It is also a great idea to seek financial and business advice before making your pitch live, and solidifying the commitment you have made to anyone who decide to pledge and support your business.