Spotlight on Crowdcube
An interview with: Matt Cooper, Co-CEO at Crowdcube, Europe’s largest private market investment platform.
Tell us more about Crowdcube?
We are Europe’s largest private market investment platform.
We were born out of the belief that there should be more options for entrepreneurs to raise capital, and that retail investors should have access to an asset class they have traditionally been closed off to. To date, Crowdcube has raised over £1.7bn for over 1,300 mission-driven businesses, including Monzo, BrewDog, Qonto and Revolut, and built up a community of over 1.7 million members.
Historically, our focus was on primary capital, but as the platform has grown and evolved, our offerings have expanded to include both primary and secondary capital, as well as retail IPOs, providing European startups with the liquidity they need, from seed-stage to exit. We were the first equity crowdfunding platform to receive pan-European regulatory approval, allowing us to leverage our decade-long experience and expertise from the UK across the continent.
Why did Crowdcube decide to join the UKCFA?
Our co-founder Darren was one of the founders of the UKCFA!
They have been a great advocate for the industry, consulting with The Treasury and FCA. They have helped shape regulation and prepared the industry for change.
Tell us your current take on the industry, what works well and what present or future issues might affect the industry?
The UK has historically been a leader in enabling retail investors to support private businesses, well ahead of the US and Europe. Allowing retail investors to participate can lead to increased capital flow and liquidity, fostering economic growth.
For businesses, having retail investors on their cap table has proven to be a successful funding strategy. For example, one of our portfolio companies, Chip, has found that its investors are 500% less likely to churn than non-investors.
Democratic access to investment opportunities is important – a cornerstone of the UK’s approach to financial inclusivity. However, as an industry, we need to work together to ensure the UK nurtures the right environment to continue leading the way.
The UK pioneered progressive regulation of retail in private markets, setting a standard that other countries have emulated. We have a progressive tax regime that promotes investment into private businesses, exemplified by the highly successful EIS and SEIS schemes.
Policymakers across Europe are trying to revive their individual stock markets by changing listing rules, enhancing incentives for company founders, and encouraging pension fund and retail investment in domestic stocks.
We must all work together to bridge this gap, ensuring that all investors have equitable access to emerging opportunities in the market. Only through collaboration and innovation can we realise the vision of a truly inclusive investment ecosystem.
If you would like to learn more about Crowdcube or speak with Matt directly, please visit: https://www.ukcfa.org.uk/company/crowdcube/