We saw our most successful year ever in 2017 as unprecedented demand from entrepreneurs and investors produced record-breaking levels of investment through the platform into growth companies. £130 million was invested into pitches on the Crowdcube platform over the year – the highest ever on any UK platform – while 120,000 investments were made, a 48% increase and a new record for us.
The numbers confirm our position as global market leader in equity crowdfunding, as fast-growing young companies increasingly see crowdfunding as their preferred choice for raising new investment. Equity crowdfunding makes up a quarter of all UK deal activity by volume, according to Beauhurst, the research company. A record 325 companies chose to fund on Crowdcube last year, a year-on-year rise of 23%.
These results were achieved during a year in which we had focused on improving our user experience, making it faster for growth companies to hit their funding target and easier for people to invest on the platform. £9m has now been invested via the Crowdcube iOS app, while the new Crowdcube Android App has just been released!
For larger growth companies, crowdfunding now represents an additional funding source to investment from venture capital firms. Last year, we hosted 33 funding rounds that raised over £1m pounds, which is in the bracket commonly offered by VCs. We expect to host more high-value rounds this year, with Crowdcube’s community of investors now at half a million people.
We are also growing our footprint outside the UK, with €8.3m invested in European companies in 2017, a 56% increase, and $225k raised for a US company.
Tom Blomfield, CEO of digital challenger bank Monzo, which raised £2.5m on Crowdcube in 2017, said: “Everything we do at Monzo is defined by our users. Our goal is to solve their problems, listen to their feedback, take on their ideas so that together we can build a better kind of bank. Raising on Crowdcube supports that: it means we're owned by our customers too. By helping us easily access funds and engage with the crowd, Crowdcube has really helped us make that possible."
Our team are thrilled by our numbers for 2017, which confirm that crowdfunding is now an established, fast-growing and much-valued element of the funding ecosystem for growth companies. As demand from both entrepreneurs and investors increases, we’re working hard to further improve our platform, and make it even easier for entrepreneurs and investors to connect with each other effectively. Crowdcube’s transparency and connectivity are ideally suited to our vibrant community of investors and entrepreneurs, as they make use of an open funding system connecting exciting growth businesses with the capital they need.
You can read our full 2017 report today, including stats from Q4 to find out more.