E-Car Club marks world’s first successful crowfunding exit
Investors who backed tech start-up via Crowdcube have received "multiple return" on investment following sale to Europcar
In a world first for the crowdfunding industry, tech start-up E-Car Club has made a successful exit and given the investors who backed its campaign on Crowdcube a “multiple return on their money”.
An electric car sharing club for businesses and communities, E-Car Club had raised £100,000 through the equity crowdfunding platform in 2013 from 63 investors.
Having today announced the sale of its business to Europcar – one of Europe’s leading car rental companies – its orginal ‘crowd’ investors have received a return on their investment; evidence that crowdfunding can be a lucrative investment opportunity.
Founded in 2011 by Chris Morris and Andrew Wordsorth, E-Car Club works with councils, social landlords and community groups to promote pay-per-use car clubs as an alternative to traditional car ownership.
It was one of the first businesses to raise equity capital via Crowdcube and went on to secure institutional investment in a deal led by Ignite Social Enterprise LLC.
E-Car Club’s Wordsworth commented: £We absolutely loved raising investment on Crowdcube in 2013, which really kickstarted our growth and we’re exceptionally grateful for the support of the crowd from investment through to exit. Without their initial investment today’s announcement and our ability to deliver social benefits within local communities would not have been possible.”
Crowdcube co-founder, Luke Lang (pictured), said the news marked a “fundamental step in the evolution of crowdfunding”:
“The sale of E-Car Club to one of the world’s leading car-hire companies and the multiple return delivered to the people who invested through Crowdcube marks another momentous milestone in the history of equity crowdfunding. Delivering financial returns are vital to the long-term growth of equity crowdfunding so we’re extremely proud to be the first to achieve this in just over two years after investors backed E-Car Club.
“As crowdfunding becomes mainstream it’s now commonplace for people to invest on Crowdcube alongside world-renowned venture capital firms, acclaimed angel investors, institutions and even the UK government.”