Crowdcube

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Crowdcube
Crowdcube Corporate Logo.svg
Type of site
Crowdfunding Corporate finance Equity (finance)
Headquarters Exeter, Great Britain
Industry Finance
Website crowdcube.com
Commercial Yes
Launched February 2011

Crowdcube is a British investment crowdfunding platform. It was established by Darren Westlake and Luke Lang in 2011.[1]

Regulation[edit]

In February 2013, Crowdcube received authorisation from the Financial Conduct Authority (FCA) to offer investors the opportunity to become direct legal shareholders in UK businesses.[2]

Successful exits[edit]

In July 2015, E-Car Club, an electric vehicle rental business championing the future of the green sharing economy, produced the first exit from the CrowdCube 'Funded Club'.[3] E-Car received a significant investment from Europcar, Europe's largest vehicle rental business.[4] E-Car club has joined the newly formed Europcar Labs project, which has been set up by CEO Philippe Germond to focus on 'mobility solutions'.[5] This is Europcar's first acquisition since its IPO on the Euronext in early June 2015.[6] 63 original investors in E-Car Club via Crowdcube benefited from a multiple return on their investment.

In December 2015, it was announced that Camden Town Brewery was being bought by the world's largest brewer, Anheuser-Busch InBev. In a letter to Crowdcube shareholders, AB InBev were offering a payout of between £1.0861 and £1.2526 per share,[7] depending on whether they accept an option with a variable element based on sales growth to be paid at a later date. Reports said this was a nominal return on investment of just under 70%, implying that AB InBev paid around £85 million.[8]

Funded campaigns[edit]

Equity

Some examples of companies that have acquired funding using this method are as follows:

Business Amount Raised No. of Investors Equity Released Date
Kar-go £321,720 281 15.11% July 2017[9]
Sundried £176,060 208 12.11% August 2016[10]
Sugru £3,547,410 2,997 4.02% July 2015 [11]
Chilango £3,433,010 1,300 8.72% December 2015 [12]
Movem £200,000 116 20% September 2016 [13]
Pavegen £2,051,720 1798 4.48% July 2015 [14]
Adzuna £2,149,355 552 5.89% June 2015 [15]
JustPark £3,700,000 2,919 15.61% March 2015 [16]
Cell Therapy £689,246 297 1.07% December 2014 [17]
easyProperty £1,420,680 396 2.03% September 2014 [18]
Open Desk £310,010 171 18.59% June 2014 [19]
LoveSpace £1,574,590 259 28.17% May 2014 [20]
Crowdfunder £500,000 10% 10% April 2014 [21]
Zero Carbon Foods £659,480 454 29.04% March 2014 [22]
Hab Housing £1,972,150 642 26.29% September 2014 [23]

Bonds

Bonds allow members of the public to lend money to the issuing company in return for interest and / or rewards. Mini-bonds have “particular appeal for established businesses”.[24]

In June 2014 Chilango launched Crowdcube’s first ever mini-bond campaign. Since then a number of other businesses have launched mini-bond offerings via the Crowdcube platform. Some of the businesses that have funded bonds via Crowdcube include:

Company Amount Raised No. of Investors Interest paid Date
Brew Dog £2,312,000 815 6.5% Oct 2015 [25]
Taylor St Baristas £1,805,000 493 8% Jan 2015 [26]
Eden Project £1,500,000 355 6% October 2014 [27]
River Cottage £1,000,000 285 7% June 2014 [28]
Chilango £2,035,000 347 8% June 2014 [29]

Events[edit]

Caterham F1 In November 2014, Crowdcube partnered with Caterham F1 to raise £2.35 million to get the team to the final Grand Prix of the season in Abu Dhabi.[30] Designed to empower F1 fans to help Caterham return to race, the project successfully completed on the 14th November,[31] with Caterham F1 finishing in 17th place with Grand Prix newcomer Will Stevens.[32] Caterham F1 went bankrupt in 2015.[33]

See also[edit]

References[edit]

  1. ^ "Crowdcube | Nesta". www.nesta.org.uk. Retrieved 2017-10-16. 
  2. ^ "British regulator okays start-up investment website for public". Reuters. 4 February 2013. 
  3. ^ Avi Geller. "Europcar's acquisition of E-Car Club 'world's first successful crowdfunding exit'". Growthbusiness.co.uk. Retrieved 2016-04-21. 
  4. ^ "The Europcar Lab takes majority stake in E-Car Club" (PDF). E-carclub.org. Archived from the original (PDF) on 4 March 2016. Retrieved 21 April 2016. 
  5. ^ Andy Sharman in London (2015-06-15). "Europcar plans Paris IPO to fund push into 'mobility solutions'". FT.com. Retrieved 2016-04-21. 
  6. ^ "Resounding success of Europcar's listing on". Euronext.com. 2015-06-26. Retrieved 2016-04-21. 
  7. ^ "Here's Camden Town Brewery's letter to shareholders about the AB InBev takeover". FT Alphaville. 21 December 2015. Retrieved 22 December 2015. 
  8. ^ Davies, Rob (21 December 2015). "Camden Town Brewery sold to world's biggest drinks company". The Guardian. Retrieved 22 December 2015. 
  9. ^ "Academy of Robotics raising £300,000 investment on Crowdcube. Capital At Risk". Crowdcube. Retrieved 2016-06-06. 
  10. ^ "Sundried raising £125,000 investment on Crowdcube. Capital At Risk". Crowdcube. Retrieved 2016-09-06. 
  11. ^ "Crowdfunders stick Sugru glue record 3.5m raised" City AM News, July 2015.
  12. ^ "Chilango Closes Funding on Crowdcube at £3.4 Million. Will Open 50 New Locations" Crowdfund Insider, December 2015.
  13. ^ "Forbes - Why start ups are ignoring the risks" Forbes, September 2016.
  14. ^ "Former Apple executive Jeff Martin Joins Crowdfunded Start-up Pavegen" International Business Times News, July 2015.
  15. ^ "Job search site Adzuna Raises 1.5m via Crowdcube to get Britain Working" Business Matters News, June 2015.
  16. ^ "JustPark becomes UK's largest equity crowdfunded start-up" TechCity News, March 2015.
  17. ^ "BioTech Firm Cell Therapy Claims Crowdfunding Record With Heart Drug" Herald Scotland, December 2014.
  18. ^ "Stelios latest wheeze easyProperty smashes crowdfunding target by 30%" The Telegraph, September 2014.
  19. ^ "OpenDesk raise £150,000 in 12 hours" Westminster Impact Hub, June 2014.
  20. ^ "LoveSpace hits £1.6m as Shazam Venture Capital firm adds £250,000 to funding pot" Archived 2 April 2015 at the Wayback Machine. UK Business Angel Association, May 2014.
  21. ^ "Reward-based crowdfunding platform secures £500,000 target in just over three hours" Startups, April 2014.
  22. ^ "Growing under the Tube: 141% Funding for Zero Carbon Food’s Crowdcube Campaign" Crowdfund Insider, March 2014.
  23. ^ "Kevin McCloud is a hit with the Crowd(cube)" Management Today, September 2013
  24. ^ Bridge. Rachel, "Soapbox: Established businesses should consider using crowdfunding too, says Adam Blaskey" Telegraph, December 2014.
  25. ^ "BrewDog Bond raising investment on Crowdcube. Capital At Risk". Crowdcube.com. Retrieved 2016-04-21. 
  26. ^ "Niche coffee house chain Taylor St Baristas secures £1.8m Crowdcube mini-bond" Startups, Feb 2015.
  27. ^ "Eden Project crowdfunding raises £1.5m in 20 hours" BBC News, October 2014.
  28. ^ "Fearnley-Whittingstall's River Cottage raises £1m through mini bonds" Real Business, June 2014.
  29. ^ "Will Chilango's £2m Success Herald An Affordable Mini Bond Revolution?" Forbes, June 2014.
  30. ^ Wise, Mike. "Caterham launch crowdfunding project to fund team's return for the Abu Dhabi GP | F1 News". Skysports.com. Retrieved 2016-04-21. 
  31. ^ Strickland, Jamie (2014-11-14). "Caterham to race in Abu Dhabi finale after fundraising success". BBC Sport. Retrieved 2016-04-21. 
  32. ^ "Past Results - Abu Dhabi Grand Prix". Skysports.com. Retrieved 2016-04-21. 
  33. ^ "Caterham hopes fade as team's remaining assets go up for sale". BBC. Retrieved 13 April 2016.