We finished 2016 on a high with a new record after BrewDog raised £10 million via a bond issue on the platform, making it the largest raise on a UK crowdfunding platform to date. 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.
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.
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.
Over the next 12 months we anticipate more businesses following in the footsteps of Camden Town Brewery, E-Car Club and Wool and the Gang by delivering investors’ a financial return. Over £5 million has been returned to investors on Crowdcube over the last two years from bond interest payments and equity exits through trade sales to the likes of Europcar and AB InBev - a further indication of how crowdfunding is maturing.
We also predict an increase in businesses coming to Crowdcube for later-stage growth funding and that more businesses that have funded on Crowdcube will go on to secure follow-on investment from venture capital and institutional investors, such as Farmdrop which closed a £3 million funding round led by Atomico last year.