IPO market to be disrupted by Crowdcube’s new offering

The platform has amassed an investor community of nearly 200,000, and almost 100m has been invested through the site since its launch in 2011. According to data from Crowdsurfer, Crowdcube has secured more investment for businesses in 2015 than the rest of the market combined.

Furthermore, Crowdcube celebrated its first company exit in July when E-Car Club was acquired by Europcar and delivered a multiple return to its investors.

To further capitalise on the concept, the company has enlisted the help of UK stockbroker Numis, which has so far raised 10bn for companies since 2009 in more than 46 IPOs. Numis will be working with Crowdcube and regulators to enable firms that are planning to list shares on London’s Stock Exchanges main market or AIM, to access individual investors. As part of the deal, Numis bought 8.49 per cent of Crowdcube and gained a position on the platform’s board.

“We think Crowdcube will have the opportunity to democratise initial public offerings (IPOs) in the future, and well work with them to do that so that individuals will get the access to IPOs they couldnt in the past,” said Numis CEO Oliver Hemsley.

He explained that companies will be looking to raise money via online platforms with increasing frequency.

Iconic Silicon Valley investor Tim Draper and London-based Draper Esprit have also joined alongside existing backers Balderton Capital.

The aim is to launch this feature within a year at a very affordable level , said Darren Westlake, CEO of Crowdcube. According to Westlake, the company is on a mission to help more businesses raise the finance needed to grow, create jobs and deliver returns to investors. He suggested that since Crowdcube had dominated the democratisation of seed-stage equity investment it was determined to do the same for larger businesses.

He added: Our goal is to solve the funding continuum for ambitious, high growth businesses; delivering seed-capital right through to IPO. We have a proven track record of disrupting the status quo. With high calibre new investors joining the team who share our vision of widening companies access to capital, this new round of funding puts us in a very exciting position.

Crowdcube will also use the new funding to expand its existing operations, where it expects new regulation modelled on the UK regime to aid the growth of equity crowdfunding.

Share this story

Send this to a friend