From crowdfunded parking lots to banking institutions and a German coffee brewing system, the last three years have revealed the galaxy of possibilities afforded by crowdfunding.
The Beauhurst report “The Deal – Equity investment in the UK year 2016” states that crowdfunding platforms continue to dominate the investor ranking, with Seedrs and Crowdcube taking the first and second place on the podium. The two crowdfunding platforms are responsible for 86% of all crowdfunding activity and for 21% of all equity investments in the UK. Seedrs stated that during 2016 more than £85m was invested in 159 campaigns by investors from 65 countries.
Below are some examples of the most successful crowdfunding campaigns of the last three year, hosted by some of the major crowdfunding platforms.
In June 2017, German coffee startup Bonaverde has successfully completed its equity crowdfunding round on Seedrs. The company was seeking £750.000 but within the first month it had already exceeded its target and concluded the round with more than £1.3m.
PERKBOX AND WESWAP
In October 2016, a record of £20m was raised on Seedrs. £4.35m of the amount was invested into employee and customer engagement provider Perkbox, becoming the biggest fundraise on the platform since launch. In the same month, investors backed peer-to-peer travel money platform WeSwap, raising over £2.4m, setting the record for the most investors in a single campaign.
Mondo, a UK neobank, took the record for the world’s fastest equity raise not just on a crowdfunding platform – but ever - £1 million was raised in just 96 seconds on Crowdcube. Changing the name to “Monzo”, in 2017 the digital bank has raised an additional £2.46m, from more than 6,800 investors – the highest number on Crowdcube.
Mondo’s model, a 100% digital bank that uses modern technologies and AI to learn from its customers, has obvious popular appeal which has prompted its promising success.
According to a report published by Allied Market Research, neobanks are believed to progressively and significantly grow in coming years. This new type of banking services is developing globally. In Australia one of the first 100% digital (soon-to-be) bank, Xinja, will start a capital raise on the equity crowdfunding platform Equitise.
As soon as the platform acquires its license to operate as a retail equity crowdfunding platform, anyone in Australia, from as little as $250, will be able to access this exciting investment opportunity. [Like all investing, there is risk involved so make sure you consider the offer document and the general risk warning.]
Manifesting just what can happen when users’ interests align, JustPark is the soaring startup allowing individuals to rent their parking spaces to those nearby. As the largest equity crowdfunding raise in UK startup history, JustPark walked away from their 2015 round with £3.7 million raised by 2,919 investors.
Equity crowdfunding platform Seedrs saw its largest raise of 2015 with the peer-to-peer lending platform Assetz Capital. Assetz Capital, which provides loans to SMES and property developers in the UK, raised £3.2 million, enabling it to double employees and launch international ventures. Less than two and a half years after this success, Assetz ran another round on Seeds to raise more growth funds, raising a total of £1.6 million in October 2017.
Seedrs by Seedrs
Beating itself at its own game, Seedrs joined in on the action and raised £1 million through its own platform in 2015. Achieved in a single morning, this meta-funded raise provided the necessary working capital for our pioneering friends at Seedrs, who continue to set the rules of the crowdfunding game.
At a staggering £3.4 million from 1,500 investors, this raise for the Mexican fast food chain was the second biggest raise of 2015. From Costa Coffee executives to venture capitalists’, Chilango launched an impressive campaign which was of interest to many different investors.
Camden Town Brewery
What’s better than raising almost £3 million (£2,750,860 to be exact) from 2,173 Crowdcube users? It could be that just after the raise, Camden Town Brewery was then bought out by beer giant Anheuser-Busch InBev. The company and its investors certainly had a good 2015.
Proving that real estate software and crowdfunding go together like lawns and white picket fences, eMoov raised £2.6 million through in October 2015. One zealous investor was so moved he put £575,000 into the project.
This overview of the top crowdfunded capital raises from the last few years shows the developments in the fintech industry as the market continues to push the boundaries of innovation, redefining its capabilities and giving eager investors the platform to invest in exciting businesses they believe in.