Record breaking quarter for equity crowdfunding raising £111mn for 106 campaigns as main platforms announce merger

Record breaking quarter for equity crowdfunding raising £111mn for 106 campaigns as main platforms announce merger

Press Release: Equity Crowd Expert, 5 October 2020

106 Equity Crowdfunding campaigns successfully raised £111 million, the highest quarterly marks for the industry so far. But this record was achieved with assistance from the UK government’s Future Fund which will likely match some significant investments.

All quarterly metrics are significantly higher than those achieved in Q2 2020, while the number of campaigns successfully closing rose by 22%, the capital raised soared by 76% and the number of individual investments more than doubled compared to Q2 2020 (102%).

Today, Crowdcube and Seedrs have announced their intention to merge – a development that will profoundly change the crowdfunding industry.
Some interesting points to note this quarter:

  1. Chip was the largest campaign in terms of capital raised, reaching £11m but more investors were attracted
    by Moneybox’s pitch as 16,735 crowdfunders backed that opportunity. Both campaigns were conducted on Crowdcube.
  2. The majority of the capital was raised via Crowdcube (57%) where 4 of the top 5 largest campaigns took place (vs. 42% for Seedrs and 1% for other platforms) but the two main platforms raised a similar number of
    campaigns (49% on Seedrs; 48% on Crowdcube and 3% on other platforms)
  3. So far in 2020, there were 25 Crowdfunding Campaigns raising over £2m. A similar number of campaigns were conducted on the two major platforms but Crowdcube raised 55% of the overall capital.
  4. There are many deals in the pipeline, with 83 active crowdfunding campaigns targeting £56.2m. Interestingly Seedrs dominates this area, accounting for 48% of the active campaigns (vs. 18% for
    Crowdcube and 34% for the other platforms)

For more information and analysis, see the full Report here:
https://equitycrowdexpert.com/client/reports/EquityCrowdExpertQuarterly2020Q3.pdf


Etienne Paresys, Founder of Equity Crowd Expert ltd.
“In such a slow economic environment, it is impressive to see the crowdfunding industry beat its own records. All signs show that The Crowd is getting larger and is further increasing their investment in crowdfunding opportunities. After today’s bombshell merger announcement between Seedrs and Crowdcube it is really anyone guess to forecast
how the industry will develop in the future. Combined, the two platform accounts for the large majority of the UK equity crowdfunding dealflow. The Crowd will dictate if the merger was the right move or not and if crowdfunding will continue to break records!”

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