The latest industry update showing an increase in equity investment in the UK

  • Thursday 27th July 2017

According to the latest industry update, provided by Beauhurst, the first half of 2017 has been the best one yet for equity investment in the UK.

Equity Investment

H1 2017 has seen a record amount of investment into UK high-growth businesses. The total amount invested has increased by 75% from H2 2016 - reaching a staggering £3.03 billion. These impressive statistics can be directly attributed to two of the largest deals on record - £389 million for Improbable and £313 million for FarFetch. In correlation with this data, the number of deals involving funds headquartered outside of the UK continues to grow, increasing by 27% from the previous quarter.

Although investment amount has risen, the number of deals completed in the last 6 months remains stable, increasing slightly from H2 2016 and falling marginally from H1 2016. 

Seed stage companies still represent the largest proportion of crowdfunded companies, with venture stage companies not too far behind. The remaining deals are made up of larger, growth stage businesses. 

Crowdfunding Q1

Generating over £98 million of investment over H1 2017, crowdfunding continues to outperform government and Angel networks when it comes to deals funded, coming second only to private investment/venture capitalists, which invested over £98 million in H1 2017.

Crowdcube is channelling more money to entrepreneurs than any other crowdfunding platform. Crowdfunding is now an established element of the growth company scene, with nearly £100m invested via crowdfunding in the last two quarters, which is up when compared to the second half of 2016. Since crowdfunding’s first beginnings in the wake of the financial crash, a vibrant sector has grown up that has now supported the growth of hundreds of companies, accounting for 24% of all equity deals so far this year. Many thousands of investors have been able to make investments in growth companies that used to be the preserve of institutions.  

Q1 2017 crowdfunding provided £50 million of investment over 87 deals in total. Of this, Crowdcube can be attributed to 46%, or £23 million, making us the industry leaders for the amount invested. Additionally, of the top five deals completed Crowdcube is responsible for for the second, third and fourth largest. 

Crowdcube also completed 29 deals, the second highest amount. In comparison, Seedrs completed the most at a total of 35 - including pre-emption and fund campaigns, raising a total of £9.3 million.

Crowdfunding Q2

Despite deals falling by 18% to 71 in total, the amount invested is only slightly less than Q1, at £48 million. 

Aside from this, Q2 statistics are relatively similar to their Q1 counterparts. Crowdcube retains its title as industry leaders for total amount invested, generating £18.86 million, followed by Seedrs at £11.1 million (including pre-emption and fund campaigns) and VentureFounders at £9 million.

The top five largest crowdfunding deals are taken by:

  • VentureFounders - £4.7 million (Hopstar)
  • Crowdcube - £3.2 million (Vita Mojo)
  • SyndicateRoom - £2.8 million (Peptinnovate)
  • VentureFounders - £2.5 million (Jupiter Diagnostics)
  • Seedrs - £2.1 million (Core Collective)

Crowdcube milestones

Over the first half of 2017, Crowdcube has managed to surpass multiple large milestones.

We were proud to announce our dominant position in the market retaining 48% market share, based on figures supplied by Beauhurst in the quarterly report - the 'Crowdfunding Index'.

We completed the world's first on-platform secondary share trade when Mettrr technologies offered its Crowdcube investors a liquidity event after angel investors acquired a stake in their company. Investors received a 9x return on their original investment.

Our investor community grew to over 410,000 members, with over £300 million being invested through the platform to date.

Additionally, Crowdcube Spain is set for a record breaking year after raising £2.9 million in the last six months. The total number of deals completed for all UK and international fundraises stands at 71, with total funds raised reaching £45 million - well on our way to reaching a record breaking £90m for the year.