Before today, UK equity crowdfunding platform Crowdcube has raised more than £173m from over 295,000 investors to complete 426 successful raises, and described itself as the world’s leading investment crowdfunding platform. Minutes ago that status was confirmed when Crowdcube exceeded a £5m target and had raised a £5,003,024m investment for themselves from 1,627 pre-registered early investors. This was their largest ever raise and they are still open to further investors.
This initial target of £5m was set against 7.14% equity, valuing Crowdcube at just over £70m. A stretch target for over-funding could see up to a total of £12m raised. Fundraising is due to move to Stage 2 tomorrow (July 19) when Crowdcube will open their doors to investments from the general public.
In total, would-be investors have apparently registered an interest in buying £50m of shares in the company, and Crowdcube is believed to be setting up a secondary market where successful purchasers will be able to trade their newly acquired shares. If they do, then given that demand appears to exceed supply by a factor of over four there could be some early ‘stag market’ sales for quick returns.
By nearly midnight on July 27 the total sum invested by 3,157 backers had reached almost £6.75m. In very rough terms, the first 1,600 or so backers invested just over £5m, and the second set of almost 1,600 smaller investors has invested just under £1.75m – still an average of over £1,000 each.
If you are in London in the evening of August 9 there is a chance for possible investors in Crowdcube to meet the two co-founders and the senior management team at an invitation-only event to be held at the Ethos roof terrace in Spitalfields. Contact Crowdcube for an invitation, it’s not an open door event that you can simply turn up at.