UK Crowdfunding Association publishes 'The Millionaire's Club' list
UK Crowdfunding Association publishes ‘The Millionaire’s Club’ list
The UK Crowdfunding Association (UKCFA), the trade association representing more than 40 crowdfunding platforms in the UK, operating across equity, loans and donations, has today announced the list of those equity crowdfunds which have raised £1million or more from private investors. Several crowdfunds raised significantly more once institutional backing was included, as illustrated in the full list and ‘The Millionaire’s Club’ demonstrates the success and broad scope that equity crowdfunding has enjoyed in recent years.
With the retreat of traditional bank lending in the wake of the financial crisis, both loan-based and equity crowdfunding have become increasingly popular as businesses search for alternative sources of finance to help them grow. The UK Crowdfunding Association statistics demonstrate the increasing might of crowdfunding as a means for UK businesses to raise finance both from individuals and from larger institutions.
In the rankings, Triodos Renewables, an arm of Triodos Bank, came out in first place. The renewable energy investor set the record for the highest ever equity crowdfund, raising £3.5million from 1,045 individual investors in a raise that closed at the end of January.
All stats were verified with the individual platforms who provided the figures which included a breakdown of total money raised both from institutional and individual investors. The statistics also include details of both the largest and smallest single investments.
Julia Groves, Chair of the UK Crowdfunding Association said:
“Crowdfunding is about making direct funding of businesses more accessible to ordinary investors, so we wanted to look at which investments were the most popular with individuals, as well as those that had received funding from institutions.
These figures really demonstrate the public’s growing interest in alternative destinations for their money and in investments which can foster innovation and entrepreneurship, stimulate the economy and help local communities flourish.
“What the figures also show is that crowdfunding is an attractive way for institutional money – whether that is venture capital firms or investment funds – to invest in businesses they like.
“It should also give smaller investors confidence to know that larger, professional investment firms are putting in money alongside them.”
Matthew Clayton, Executive Director of Triodos Renewables, commented: “Much like crowdfunding, Triodos Renewables has been committed to providing retail investors access to investment directly into sustainable energy for 20 years – and for this share issue almost half of the money raised came from previous investors. The emergence of crowdfunding platforms is a great development for the renewable energy space, providing more individuals with opportunities to contribute to, and benefit from, the transition towards a cleaner energy system. We are now busy putting the proceeds of our share issue to work investing into renewable energy assets.”
Erik Fairbairn, CEO, POD Point said: “POD Point is fantastically suited to crowdfunding – we’re tackling a massive, but understandable problem in wiring up the UK ready for the EV (electric vehicle) revolution – we are a leading brand in the space already, and almost every EV driver in the UK is actively interested in helping build up the UK’s EV charging infrastructure. Crowdfunding has historically been the domain of very early stage companies, but POD Point and Seedrs have demonstrated that, done right, crowdfunding can also be applied to growth funding.”
Jeff Kenna, Managing Director, Bath & West Community Energy, said: “Traditionally BWCE has raised the money it needs to build its community energy installations by running local meetings and recommendations from existing members. As the need to raise larger sums has grown so we have found using an platform such as Ethex indispensable. It has a trusted ethical ethos which chimes with our philosophy and crucially gives us access to potential investors throughout the country. Although the majority of our members are still local, Ethex has successfully introduced us to a new group of people who want to make an ethical investment.”
Barbara Lead, CEO, Oval Medical Technologies added: “Oval has recently raised £1.3m to progress the development of its auto-injector platform. This sum included just over £110,000 from SyndicateRoom investors which was then matched by the Low Carbon Investment Fund, contributing to the £1.3m total. I was very impressed with the way SyndicateRoom is organised and the speed with which the investments were made. Since receiving this investment, Oval has made significant progress in commissioning equipment required for the manufacture of devices for a clinical trial with its first drug device combination and has also secured interest from a commercial partner.”
Frazer Thompson, Chief Executive, Chapel Down Group said, “We were delighted at the results we achieved and continue to get from our hugely successful crowd funding raise. With 1500 new, passionate, engaged, committed and happy new investors we can look back on the fund-raising as not only a landmark moment for Chapel Down and the embryonic industry but also a fantastic marketing and business opportunity. I not only get investors but people who will talk about our brand and company to anyone who will listen!”
David Toplas, CEO/Chairman, Mill Residential REIT, said: “We’re delighted to have made history with SyndicateRoom as the first crowdfunded company to float on a UK stock market, which allowed investors access to residential property for a fraction of the cost of buying a flat. Crowdfunding’s coming of age is good for both investors and the companies raising money, as a wider shareholder base provides greater liquidity and a better price for the shares. Even more importantly, our flotation now allows ordinary investors to hold mainstream buy-to-let property in their pensions and ISAs for the very first time and allows ‘Generation Rent’ a way to get on the property ladder by saving for a deposit in something which keeps pace with the asset they’re trying to buy.”
PRESS RELEASE ENDS
The full list of figures can be downloaded at: Million pound crowdfunds_160215
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