UK crowdfunding robust with £47m invested in first quarter of 2017
Seedrs is responsible for the lion's share of deals, but Crowdcube sees more than double the amount of investment
Crowdfunding has emerged as a major player in the UK’s high-growth company finance market in the last few years, with £47m invested over 82 deals in Q1 2017 alone – according to Beauhurst’s Crowdfunding Index.
Unsurprisingly, Startups 100-featured Crowdcube and Seedrs have continued to dominate the market into 2017 – and while Seedrs has seen 35 deals to Crowdcube’s 29, more than double the amount of funding has been invested through the latter (£23m versus £9.3m).
Meanwhile, VentureFounders – one of the top new businesses of 2014 – is responsible for the biggest average deal size (£1.5m), followed by Crowdcube (793,000) and Startups Awards nominated Syndicate Room (£654,000).
The biggest crowdfunding deal of the first quarter of the year was Lightpoint Medical’s £3.3m raise on VentureFounders, followed by Monzo (£2.5m), Cocoon (£2.4m) and Gripit Fixings (£2.1m) – which were all Crowdcube campaigns.
Since 2011, the report found that crowdfunding deal volume rose sharply to a peak of around 100 in the third quarter of 2015 , before dropping to a low around the time of the referendum last year. It is now steadily rising again.
Of all crowdfunded companies in the UK since 2011, 13 have exited (1% of all firms), while the vast majority (53%) are at seed stage, 23% are at venture stage, 5% at growth and 10% are dead.
London and the South East are home to the highest number of crowdfunded companies, with most London-based firms residing in Westminster, Camden and Hackney.