Crowdcube has officially raised more funds for UK businesses than any other crowdfunding platform, Beauhurst reveals in The Deal 2019 report. In 2019, we helped raise £125m for entrepreneurs in the UK; that’s 26% more than our closest competitor, who was involved in £99m.
Beauhurst also noted that 2019 was the ‘busiest year on record for these platforms’ with 424 deals by UK businesses involving crowdfunding platforms. As they put it, ‘Clearly, the crowd is showing great appetite for a chunk of the UK’s fastest-growing businesses, and entrepreneurs want them on board.’
Another trend we’ve also experienced is the increase in campaign size; according to the report ‘Individual deal sizes have grown massively’. 2019 was a record year for £1m raises for Crowdcube, with 40 businesses raising or rocketing past a £1m target. This, as well as shining examples from Cowboy, Curve and Freetrade, demonstrates this burgeoning trend.
It was a bumper year for Fintech and AI, with these sectors securing a record number of equity deals. We can attest to this, having successfully fueled the likes of Curve and Funded Club veteran, Freetrade. Fintech was our most popular sector by amount raised, generating £37m in 2019.
Beauhurst’s report details the advances in sustainability, sighting investment into various cleantech and foodtech companies, all on a mission to make the world a greener place. We too have witnessed an increase in investor interest here, with prime examples from last year being Cowboy, Pavegen and Cornish Lithium. In the words of Beauhurst, ‘We’re now witnessing the start of a seismic shift towards more environmentally conscious innovations, including clean energy and electric vehicles’.
Generally, investment into female-founded businesses remained static, at around 20%. Beauhurst previously named crowdfunding the best way for female-led businesses to raise funding, head and shoulders above angel investing, private equity and corporate finance. Notable female founders raising on Crowdcube in 2019 were Louise Hill, co-founder and CTO of gohenry, Sofia Fenichell, CEO and founder at Mrs. Wordsmith and Emma Ash, co-founder of youngplanet.
We’re thrilled to have helped more entrepreneurs than ever before fuel their businesses. We’ve had a great start to 2020 and are carrying forward this momentum to continue to support wonderful businesses, both at home in the UK and overseas.