Crowdcube is the world’s largest equity crowdfunding platform. Since launching in 2011, they have helped more than 1,300 raises successfully fundraise, with more than 1 million members, a total of £1bn has been invested on the platform to date.
Businesses that have successfully raised funds with Crowdcube include BrewDog, Camden Town Brewery (acquired by AB INBev), carwow, JustPark, eCar Club (acquired by Europcar), Feedr (acquired by Compass Group), Freetrade, Grind, Innis & Gunn, Mindful Chef, Monzo, Parcel2Go, Pod Point (acquired by EDF), Revolut, and Nutmeg.
In this article, Shaun Sharkey, Senior Equity Fundraising Manager at Crowdcube, shares his insight on how to successfully raise from the crowd.
My role is to source start-ups that would be investable on the platform. I cover all sectors and funding amounts, ranging from an SEIS round through to a Series B extension.
I’m a huge, huge believer in the exponential power of strong relationships, so I always try to give founders the most consultative advice possible when it comes to crowdfunding.
For me, it boils down to this: we believe in people as agents of change – we believe in founders; we believe in communities. We want to support those who see the world as we do.
They share an ethos with Crowdcube: they are laser focused on community. We live in a very atomised age, so I think that people leap at the chance to join ‘movements’ – they want to feel part of something bigger than themselves.
Thus when the question of customer ownership arises, it feels right for the customer and the company.
We are at a point now where crowdfunding can fit into any one of your funding rounds, whether it be an SEIS raise or Series C. This never used to be the case. 4-5 years ago, crowdfunding was largely suitable for B2C startups with large audiences. I now see Crowdcube funding concept-stage solar start-ups to the tune of £500k.
It’s getting more difficult to answer this question, in short!
What I will say is this: there is a paradigm shift amongst the general population when it comes to investing. They now don’t just want to back challenger banks – they now want to back cleantech, SaaS, mobility, and space-tech start-ups. This trend isn’t going away. What that means for equity crowdfunding platforms is that the variety of start-ups will be much greater in the future.
I think we are sometimes a victim of our own success. People see the large numbers and headlines and crowdfunding looks fairly simple. There is actually so much to it logistically. In short – people sometimes view the exercise as a passive activity. It’s not!
If you would like an in-depth chat about crowdfunding, drop me an email on [email protected]
For further information about the preparation, planning and logistics required for a successful crowdfund, check out Runway’s dedicated Crowdfunding hub.
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