Breaking news: p2p lending platform Mintos* will run an equity crowd on british equity crowdfunding platform Crowdcube. Mintos states ‘As far as startups go, Mintos has raised very little capital so far. We have grown to become the market leader in continental Europe largely fueled by our own revenue. We see a huge market opportunity ahead of us, and to accelerate our growth and develop new products we are raising money. Our fundraising round includes both venture capital and crowdfunding. ‘.
No details regarding the amount to be raised or the valuation have been shared yet. The pitch is set to go live in late November
UK platform Crowdcube today announced that it has raised 6M GBP of investment to further accelerate its growth. The investment is led by Numis, a UK stockbroker and corporate advisor. Tim Draper and London-based Draper Esprit have also joined this new funding round alongside existing backers Balderton Capital, one of Europeâ€™s largest venture firms.
The investment will enable Crowdcube to accelerate growth, continue the expansion of its team, ramp up new product development including the creation of a new solution for companies going public, and invest further in its acclaimed marketing activities.
‘Weâ€™re on a mission to help more businesses raise the finance they need to grow, create jobs and deliver returns to investors. Weâ€™ve dominated the democratisation of seed-stage equity investment since we launched in 2011 and weâ€™re determined to do the same for larger businesses. We want to put the Public back into IPO.’ commented Darren Westlake, CEO and co-founder of Crowdcube.
Thanks to Companies House filings of British Companies are available to the public fee-free now (previously there was a small fee to access documents). This is a huge plus for equity crowdfunding as interested investors can check past filings of the pitching companies (provided the company was not founded very recently).
This also allows anybody interested to check how many shares the founders, employees and investors of the top UK equity crowdfunding platforms Crowdcube and Seedrs hold. And in order to save you the time to search yourself, P2P-Banking.com provides the direct links to the documents below:
Today British crowdinvestment platform Crowdcube started pitching the crowd to raise 1.2 million GBP. This was on the same terms as the 3.8 million GBP it raises from Balderton Capital in this series B funding. The total raised is for 25.64% equity. This puts the valuation at about 19.5 million GBP. The pitch was fundedÂ in a record 16 minutes by 142 investors. There was a minimum investment threshold of 1,000 GBP (and a maximum of 25K GBP) in this round.
Crowdcube launched in 2011 and has raised over 30 million GBP for more than 130 start-up, early stage and growth businesses. More than half of this finance has been secured in the first half of 2014. Crowdcube also succeeded to sign up international partners and now has a presence in seven countries: Brazil, Sweden, Dubai, Poland, Italy, Spain and New Zealand. I feel that Crowdcube has done tremendously well in terms of product development and building its market position.
Darren Westlake, CEO of Crowdcube commented: ‘Weâ€™re delighted to secure growth finance from such a renowned VC who will undoubtedly add tremendous value both strategically and operationally. Weâ€™ve built a pioneering and award-winning service over the last few years. This investment, alongside the crowd, puts us in an even stronger position to provide essential growth finance for businesses and inspire a new generation of investors.’
This round follows earlier rounds, where Crowdcube raised 320K GBP in Dec. 2011 (I invested a small amount during that round) and 1.5M GBP last year prompting Techcrunch to rightly state ‘Let no one accuse Crowdcube of not eating its own dog food‘. However I would expect a crowdinvestment platform to be a stellar role model in communication with its own investors and I feel there is lots of room for improvement there (especially when compared to some other equity crowdfunding pitches I invested in) as frequence and content of information provided has been sparse and I found the answers to my direct email queries to Crowdcube directors unsatisfying.
In the UK 7 innovative finance companies have joined forces and launched the Alternativebusinessfunding.co.uk website to inform SMEs what alternative funding methods they offer. Two p2p lending services Zopa and Funding Circle, two p2p equity (crowdinvesting) services Crowdcube and Seedrs as well as three other services Pension-Led Funding, Platform Black and MarketInvoice participate in this non-bank funders collaberation. These platforms account for 85% of alternative finance for businesses market and have provided more than 580 million GBP to SMEs between them.
The information website works like this: 1. Enter the amount of funding you require. 2. After each question you will see the lights change dependant on which funder suits your criteria. 3. At the final question click on any green (or amber) traffic lights for your preferred funder details. 4. All that is left now is for you to approach your funder of choice about sourcing SME finance.
British P2P Equity marketplace startup Crowdcube celebrates its first anniversary (Happy Birthday from P2p-Banking, too :-)). Lately Crowdcube picked up speed substantially in attracting more and more startups pitching for funding. While investors are currently very selective in what to fund, the volume funded has shown nice growth too. The following infographic by Crowdcube illustrates that (see ‘Amount invested’).