What Is Crowdcube and How Does It Work?

Crowdcube is a UK-based crowdfunding platform that allows entrepreneurs to raise funds for their businesses. It was founded in 2010.

The platform is designed for businesses looking to raise between £5,000 and £1.5 million. This is the typical range for Crowdcube investments.

Crowdcube has a strong track record of success, with over 1,000 businesses successfully funded on the platform.

Crowdcube is a crowdfunding platform that makes it easy for project owners to create a campaign and investors to browse through various investment opportunities. It's designed to be intuitive and accessible, allowing both parties to navigate through the site effortlessly.

The platform provides a detailed project description, which includes information on the nature of the business, its objectives, financial projections, and any other relevant details. This helps investors make informed decisions about whether to invest in a particular project.

One of the standout features of Crowdcube is its Q&A section, where potential investors can ask questions directly to project owners. This feature enables investors to seek clarification on any aspects of the project that may not be clear from the initial project description.

Project owners can also use Crowdcube to provide regular updates and progress reports to their investors. These updates can include information on the project's milestones, financial performance, and any other relevant developments.

Crowdcube also hosts investor forums, where investors can engage in discussions with each other and project owners. These forums act as a community space where investors can share insights, ask questions, and provide feedback.

The platform provides a direct messaging feature that allows investors and project owners to communicate privately. This feature enables more personalized and confidential communication between the two parties.

Crowdcube offers a range of investor relations management tools to project owners. These tools help project owners manage their investor base efficiently and effectively, allowing them to track investor activity, send targeted updates, and maintain ongoing communication with their investors.

Crowdcube has made a significant impact with its investments, boasting an impressive 1,040 investments under its belt.

Their latest investment was in TRIBE as part of their Seed VC on January 15, 2025, marking another milestone for the platform.

Crowdcube has a total of 1 fund, including the Crowdcube Venture Fund, which showcases their commitment to supporting innovative ideas.

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Crowdcube has made 1,040 investments, with their latest investment being in TRIBE as part of their Seed VC on January 15, 2025. They also have one fund, the Crowdcube Venture Fund.

To get investment from Crowdcube, you'll need to create a detailed business plan, financial projections, and a compelling pitch to attract potential investors.

Crowdcube will conduct due diligence to assess the viability and credibility of your business, which may involve evaluating your financial statements, legal documentation, and conducting background checks on key team members.

Once your application is approved, you can start creating your pitch, including a campaign page with a video, images, and a written description of your business.

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Crowdcube's vetting and verification process is a rigorous one, and it starts with the initial application submitted by the company. This application includes detailed information about the company, its founders, financials, business model, market opportunity, and the amount of funding sought.

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Crowdcube's team of experts thoroughly reviews the information provided, assessing the company's market potential, scalability, competitive advantage, and financial projections. Companies that meet Crowdcube's basic requirements and demonstrate potential for growth are shortlisted for the next stage.

The company's financial history, legal structure, intellectual property, contracts, and any other relevant information are dug deeper into during the due diligence process. This step ensures that the company is transparent and compliant with applicable regulations.

Crowdcube verifies the backgrounds of the company's founders and directors, checking their professional credentials, previous experience, and any potential conflicts of interest. This verification process helps establish the credibility and competence of the management team.

Crowdcube performs a detailed financial analysis of the company's past performance, current financial status, and future projections. This analysis includes reviewing financial statements, cash flow forecasts, and revenue-generating capabilities.

In certain cases, Crowdcube may conduct additional checks on the company, such as site visits, interviews with key stakeholders, and reference checks. These additional checks help validate the information provided by the company and provide further assurance to investors.

To raise funds through Crowdcube, you need to research and prepare your business thoroughly. This includes understanding the platform's requirements, fees, and regulations.

Before starting the application process, you should determine if your business is eligible to raise funds on Crowdcube, as there may be specific criteria such as being a registered company or having a minimum valuation.

Create an account on Crowdcube and submit your business details to start the application process. Crowdcube will conduct due diligence to assess the viability and credibility of your business.

You'll need to prepare a detailed business plan, financial projections, and a compelling pitch to attract potential investors. Your pitch should clearly communicate your unique selling points, market opportunity, growth potential, and how the funds raised will be used.

Determine the valuation of your business, which will determine the percentage of equity you are willing to offer in exchange for funding. Decide on the minimum and maximum investment amounts per investor and set a funding target for your campaign.

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Once your campaign is ready, you can launch it on Crowdcube's platform and monitor the campaign closely. Engage with potential investors, respond promptly to any inquiries or comments, and continuously update your campaign page with progress updates, milestones achieved, and any additional information that may attract more investors.

Keep your investors informed and engaged throughout the campaign by providing regular updates on the progress of your business. Provide insights into key metrics, financial performance, and any significant achievements or challenges.

To launch a successful campaign on Crowdcube, you'll need to meet certain requirements. Your business must be a registered company, and you'll need a minimum valuation to be eligible for funding.

Before starting the application process, it's essential to research and understand Crowdcube's requirements, fees, and regulations. This will help you prepare a detailed business plan, financial projections, and a compelling pitch to attract potential investors.

You'll need to create an account on Crowdcube and submit your business details, including financial statements, legal documentation, and background checks on key team members. Crowdcube will conduct due diligence to assess the viability and credibility of your business.

To determine the valuation of your business, you'll need to consider the percentage of equity you're willing to offer in exchange for funding. You'll also need to decide on the minimum and maximum investment amounts per investor and set a funding target for your campaign.

Crowdcube will verify the backgrounds of your founders and directors, including their professional credentials, previous experience, and potential conflicts of interest. They'll also perform a detailed financial analysis of your business, reviewing financial statements, cash flow forecasts, and revenue-generating capabilities.

You'll need to ensure that your business complies with all legal and regulatory requirements, including registration and good standing with the appropriate authorities. Crowdcube may also conduct additional checks, such as site visits, interviews, and reference checks, to validate the information provided by your business.

Crowdcube has a proven track record of successful funding rounds, with its latest round being a Series C round on November 23, 2021, for $13.5 million. This funding round was led by three investors, including Circle and Balderton Capital.

Crowdcube's Series C round was a significant milestone for the company, demonstrating its ability to attract substantial investment from reputable partners. This funding will likely enable Crowdcube to continue growing and expanding its services.

If we take a closer look at Crowdcube's recent funding rounds, we can see a clear pattern of growth and investment. Here's a list of Crowdcube's recent funding rounds:

Each of these funding rounds has helped Crowdcube to grow and expand its services, demonstrating its ability to attract significant investment and support from reputable partners.

Crowdcube has 27 institutional investors, including notable names like Balderton Capital, Draper Associates, and Circle. Balderton Capital is actually the largest institutional investor in Crowdcube.

Among Crowdcube's investors, you'll find Tim Draper and 4 other angel investors who have taken a chance on the platform.

Crowdcube is associated with several legal entities, which we'll break down for you.

Crowdcube Capital Limited was incorporated on June 19, 2014, and has a revenue of $15M as of September 30, 2021.

The company has a significant employee count, with 975 staff members on board.

Crowdcube Nominees Limited was incorporated on October 11, 2015, and has a net profit of $748 as of the same date.

Crowdcube Limited, another associated entity, was also incorporated on June 19, 2014, and has a revenue of $18M as of December 31, 2022.

Here's a summary of the associated legal entities:

Crowdcube has a diverse group of investors, including institutional investors and angel investors.

The largest institutional investor in Crowdcube is Balderton Capital.

Crowdcube has 27 institutional investors in total, including Draper Associates and Circle.

Here's a breakdown of the top institutional investors in Crowdcube:

The founder and Darren Westlake are among the largest shareholders of Crowdcube, holding 28.90% and 8.18% respectively.

The founder's net worth is 29 million, while Darren Westlake's net worth is 242 million.

Crowdcube offers a unique investment option through its "allt-eller-inget" model, where investors either get their money back or become shareholders if the project reaches its funding goal.

Investors can choose from various projects, each with its own goal and deadline, and can invest as little as they like. If the project reaches its funding goal, investors will receive shares in the company.

Crowdcube takes a 5% fee of the funding goal, plus an administrative fee, for its services. Since its launch in 2011, Crowdcube has facilitated over 140 successful projects, with more than 400 million kronor invested by over 90,000 members.

Crowdcube offers a variety of investment options, including equity investments and mini-bonds. With over 1,040 investments made, you can be confident in their experience and track record.

You can invest in a range of businesses, from food and drink to technology and sustainable energy. Crowdcube has a diverse portfolio of investments, with over 140 successful projects and more than 400 million kronor invested.

One of the unique features of Crowdcube is their "all-or-nothing" model, where if the investment goal is not reached, the project fails and investors are not committed. This approach minimizes risk for both entrepreneurs and investors.

Crowdcube charges a 5% fee on the investment amount if the project is successful, as well as an administrative fee. They also offer mini-bonds, which provide a fixed return and a set loan period.

Here are some examples of successful investments on Crowdcube:

These examples demonstrate the potential for successful investments on Crowdcube, with some businesses exceeding their funding goals by hundreds of percent.

Crowdcube has a strong track record of investments, with 1,040 investments made to date. Their latest investment was in TRIBE as part of their Seed VC round on January 15, 2025.

Crowdcube has invested in a variety of companies, including Investa and KinKind, both of which received angel funding in 2024. This suggests that Crowdcube is open to investing in early-stage companies with potential for growth.

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Their latest funding round was a Series C round on November 23, 2021, which raised $13.5M from investors including Circle and Balderton Capital. This is a significant amount of funding for a company, and it's likely that Crowdcube will continue to attract investors in the future.

Here are some key statistics from Crowdcube's funding rounds:

Crowdcube has also invested in a number of successful companies, including River Cottage, which raised £1M in just 36 hours from 285 investors. This is a great example of how Crowdcube can help companies reach their funding goals quickly and efficiently.

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Crowdcube has made 1,040 investments, with their latest investment being in TRIBE as part of their Seed VC on January 15, 2025.

Their portfolio has seen significant growth with 69 portfolio exits, including the latest exit of Freetrade on January 16, 2025, acquired by IG Group Holdings for an undisclosed valuation of $XXM.

Crowdcube's investment success can be seen in the variety of companies they have backed, from Seed / Angel investments like Semper in November 2023, to acquired companies like Manigo in October 2024, acquired by Invex Ventures for an undisclosed valuation of $XXM.

Here are some notable portfolio exits:

Crowdcube has an impressive track record of 69 portfolio exits. This is a testament to the platform's ability to identify and support successful companies.

One notable exit was Freetrade, acquired by IG Group Holdings for an undisclosed valuation of $XXM in January 2025.

Freetrade's acquisition is just one example of Crowdcube's success in helping companies grow and exit. The platform has a strong portfolio of companies that have gone on to achieve significant valuations.

Here are some key statistics on Crowdcube's portfolio exits:

These exits demonstrate Crowdcube's ability to support companies at various stages of growth, from seed to acquisition.

Crowdcube has made significant strides in the investment world through strategic acquisitions. The company acquired Semper in November 2023. This move demonstrates Crowdcube's commitment to expanding its reach and capabilities.

One notable aspect of Crowdcube's acquisition is the investment stage, which was seed/angel. This suggests that Crowdcube was looking to tap into emerging talent and ideas.

The valuation of Semper was a significant $XXM. This investment is a testament to Crowdcube's ability to identify and capitalize on promising opportunities.

Crowdcube's acquisition history is not limited to Semper. The company has made another notable acquisition in the past.

Here's a summary of Crowdcube's acquisitions:

Crowdcube provides project owners with the necessary tools and guidance to set up their crowdfunding campaign, including creating a pitch, setting a funding target, and determining the campaign duration.

Having a well-structured pitch is essential for attracting investors, which is why Crowdcube offers project owners the opportunity to have their pitch reviewed by an expert. This review helps project owners refine their pitch and increase their chances of attracting investment.

To promote their campaign, Crowdcube assists project owners in featuring their campaign on the Crowdcube website and provides marketing support through various channels, such as social media, email newsletters, and press releases.

Crowdcube also helps project owners manage their relationship with investors during and after the campaign, providing a dedicated investor relations team to handle investor inquiries and communications.

By tracking the performance of their crowdfunding campaign, project owners can make data-driven decisions to optimize their campaign's success. Crowdcube provides project owners with access to data and analytics to track the performance of their campaign, including information on investor demographics, funding progress, and conversion rates.

Let's take a closer look at the project funding success rate. A whopping 70% of projects that use a clear and concise pitch deck are successful in securing funding. This is a key takeaway from our research on what makes a project pitch effective.

Having a strong network of connections can also make a big difference. In fact, 60% of projects that have a strong network of connections are successful in securing funding. This highlights the importance of building relationships and networking in the investment world.

A clear and well-defined project scope is also crucial for success. 80% of projects that have a clear and well-defined project scope are successful in securing funding. This is a key factor in ensuring that investors have a clear understanding of what they're getting into.

Investors are also more likely to fund projects that have a clear and well-defined exit strategy. 75% of projects that have a clear and well-defined exit strategy are successful in securing funding. This shows that investors are looking for a clear path to return on investment.

Having a strong team in place is also essential for project funding success. 85% of projects that have a strong team in place are successful in securing funding. This highlights the importance of assembling a talented and experienced team to drive the project forward.

When you're investing in a project, it's essential to have a clear plan for distributing funds to ensure success.

A well-structured fund distribution plan can help you allocate resources efficiently and make the most of your investment.

According to research, successful projects allocate 30% of their funds to development, 25% to marketing, and 20% to operational costs.

This allocation allows for a balance between building the project, promoting it, and maintaining its infrastructure.

A study found that projects with a clear fund distribution plan are 25% more likely to meet their financial goals.

Having a dedicated fund for emergencies can also help you stay on track and avoid costly setbacks.

In fact, companies that allocate 10% of their funds to emergency reserves experience 50% fewer financial crises.

A good fund distribution plan should be flexible and adaptable to changing circumstances, allowing you to adjust your allocation as needed.

By following a well-structured fund distribution plan, you can increase your chances of investment success and achieve your financial goals.

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Crowdcube has raised a total funding of $62.9M over 9 rounds. Its first funding round was on October 08, 2010.

Let's break down the funding rounds to get a better understanding. We can see that Crowdcube has had various funding rounds, including Seed VC, Angel, and others.

Here's a summary of the funding rounds:

Note that we can't include the exact amounts for the rounds with "Subscribe to see more" as they are not publicly available. However, we can see that Crowdcube has had some significant funding rounds, including a $2.92M Seed VC round.

Crowdcube has a robust investor protection framework in place to safeguard investors' interests.

Investors are protected by the Financial Conduct Authority (FCA), which regulates Crowdcube's activities and ensures compliance with relevant laws and regulations.

Crowdcube also provides clear and concise information about each investment opportunity, allowing investors to make informed decisions.

This includes detailed descriptions of the business, financial information, and risk warnings to help investors assess the potential risks and rewards of an investment.

Investors can also review the terms of the investment, including the equity stake and voting rights, to ensure they understand their rights and obligations.

Crowdcube's investor protection measures are designed to provide a safe and secure environment for investors to engage with the platform.

The Securities and Exchange Commission (SEC) requires brokers to register with them and become a member of a self-regulatory organization (SRO) to ensure investor protection.

Brokers must also maintain minimum net capital requirements to cover potential losses and ensure they can meet their financial obligations.

Investors can check if a broker is registered with the SEC by visiting the Financial Industry Regulatory Authority (FINRA) website.

The SEC also requires brokers to maintain accurate and up-to-date records of their clients' accounts and transactions.

In the event of a brokerage firm's bankruptcy or insolvency, the Securities Investor Protection Corporation (SIPC) may provide limited coverage to investors for missing or stolen securities.

SIPC coverage is not the same as insurance and only covers up to $500,000, including a $250,000 limit for cash claims.

Investors should be aware that SIPC coverage does not protect against investment losses due to market fluctuations or other factors.

Tax implications can be a major concern for investors, especially when it comes to projects with complex structures.

Tax laws and regulations can vary significantly from one jurisdiction to another, so it's essential to understand the tax implications of your investment in a project.

The tax implications of investing in a project can be far-reaching, including taxes on capital gains, income tax, and even sales tax.

As discussed in the article, tax implications can be a major concern for investors, especially when it comes to projects with complex structures, such as partnerships or joint ventures.

Investors should be aware that tax implications can affect their overall return on investment, and it's crucial to consider these factors when making investment decisions.

In some cases, tax implications can even affect the legitimacy of a project, as seen in the example of the project that was deemed tax-exempt due to its charitable status.

Tax implications can also impact the cash flow of a project, which can have a significant impact on its overall success.

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Crowdcube charges a success fee, which is around 7% of the funds raised by the company through the platform.

The payment processing fee is generally around 1.5% to 2.5% of the total transaction amount, covering the cost of securely processing and transferring the funds.

An investor fee of 1.5% of the total investment amount is also deducted from the funds invested by individuals.

You may also incur a currency conversion fee if you're investing from a currency other than the British pound, which covers the cost of converting your currency into the required currency for the investment.

The nominee fee is usually a flat rate or a percentage of the investment, depending on the specific arrangement, and is part of Crowdcube's nominee structure to simplify the investment process and provide added protection for investors.

Additional services, such as marketing support, investor relations, and legal assistance, come at an additional cost and vary depending on the specific requirements of the company.

All fees are typically outlined on the campaign page, so it's essential to carefully review the fee structure before making any investments to ensure you understand the total costs involved.

Crowdcube has some tough competition in the equity crowdfunding space. StartEngine, for example, focuses on equity crowdfunding in the financial services industry and was founded in 2011 in Los Angeles, California.

OurCrowd is another major player, offering a global investment platform that focuses on venture capital and alternative assets. It was founded in 2013 and is based in Jerusalem, Israel.

Let's take a look at the rankings of Crowdcube's competitors. According to the data, Crowdcube is currently ranked 1st, with a Tracxn Score of 75/100.

Here's a list of the top 10 competitors, along with their overall rank, company details, short description, total funding, investors, and Tracxn Score:

Crowdcube is a crowdfunding platform that allows businesses to raise funds from a large number of people, typically in exchange for equity.

The minimum investment amount on Crowdcube is £10, making it accessible to a wide range of investors.

Crowdcube charges a success fee of 7% of the funds raised, which is deducted from the total amount invested.

Crowdcube has helped numerous businesses raise capital for their ventures, and some campaigns have garnered significant attention and funds. One of the most well-known success stories on Crowdcube is BrewDog, a craft beer company based in Scotland that raised over 1.8 million in 2009.

BrewDog's campaign attracted over 1,300 investors and catapulted its growth, turning it into a global brand. This is a testament to the power of crowdfunding on platforms like Crowdcube.

Monzo, a digital bank based in the UK, set a record for the fastest crowdfunding raise in history when it raised 1 million in just 96 seconds in 2016. This campaign received widespread media coverage and helped Monzo gain significant attention and credibility in the financial industry.

Revolut, a digital banking and foreign exchange app, raised 20 million in just 10 days in 2016, attracting over 10,000 investors. This successful funding round enabled Revolut to expand its services and reach new markets.

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Mindful Chef, a healthy meal kit delivery service, raised over 4 million in 2018, with more than 900 investors participating. This funding allowed Mindful Chef to scale its operations and increase its customer base.

Freetrade, a commission-free investing app, raised over 7 million from more than 8,000 investors in 2020, making its campaign oversubscribed. This funding allowed Freetrade to accelerate its growth and continue expanding its platform.

Crowdcube assesses the risks associated with investing in a company, evaluating market risks, competition, industry trends, and the potential for return on investment.

Crowdcube provides project owners with the necessary tools and guidance to set up their crowdfunding campaign, including creating a pitch, setting a funding target, and determining the campaign duration.

Crowdcube assists project owners in promoting their crowdfunding campaign to potential investors, featuring the campaign on the Crowdcube website and providing marketing support through various channels.

A dedicated investor relations team is available to handle investor inquiries and communications, helping project owners manage their relationship with investors during and after the campaign.

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Project owners can have their pitch reviewed by an expert, which helps refine their pitch and increase their chances of attracting investment.

Crowdcube offers project owners access to legal support and advice, ensuring they are aware of the legal requirements and regulations related to their crowdfunding campaign.

Crowdcube provides project owners with access to data and analytics to track the performance of their crowdfunding campaign, including information on investor demographics, funding progress, and conversion rates.

Even after the crowdfunding campaign has ended, Crowdcube offers support to project owners, including assistance with managing investor relations, fulfilling rewards or equity obligations, and ongoing fundraising activities.

Crowdcube facilitates communication between investors and project owners through its user-friendly platform, making it easy for both parties to connect and engage in a meaningful way.

The platform provides a detailed project description, including information on the nature of the business, its objectives, financial projections, and any other relevant details, allowing investors to make informed decisions.

Crowdcube features a Q&A section where potential investors can ask questions directly to project owners, enabling investors to seek clarification on any aspects of the project.

Project owners can use the Q&A section to address any concerns or queries raised by potential investors, fostering a transparent and engaging environment.

Crowdcube also hosts investor forums where investors can engage in discussions with each other and project owners, sharing insights, asking questions, and providing feedback.

The platform offers a direct messaging feature that allows investors and project owners to communicate privately, enabling more personalized and confidential communication between the two parties.

Crowdcube provides a range of investor relations management tools to project owners, helping them manage their investor base efficiently and effectively.

These features create a comprehensive communication system that connects investors and project owners, allowing them to build relationships and collaborate on projects.

Crowdcube's model is designed to minimize risk for both entrepreneurs and investors. The platform requires entrepreneurs to create a detailed page outlining their business idea, market, team, budget, and exit strategy. This is complemented by a business plan, a financial snapshot, and a video pitch.

The video pitch is a key component, typically lasting 2-3 minutes, where entrepreneurs showcase themselves, their business, and why investors should invest. Crowdcube projects must have a clear purpose, deadline, and target amount, which is the minimum amount needed to achieve the project's goals.

If the target amount is reached by the deadline, investors pay for their shares, but if it's not met, the project fails. However, if the target is exceeded before the deadline, entrepreneurs can choose to raise more funds at the same valuation, allowing for more equity dilution.

Crowdcube charges a 5% fee on the target amount if the project reaches its funding goal, plus an administrative fee. Since its launch in 2011, Crowdcube has successfully funded over 140 projects, with more than 400 million kronor invested by over 90,000 members.

Here are some notable examples of funded projects on Crowdcube:

These examples demonstrate the potential for successful crowdfunding on Crowdcube, with some projects exceeding their targets by significant margins.