Draper Esprit leads £8.5m Crowdcube investment
Online crowdfunding platform popular with Irish start-ups also wins backing from Channel 4
This is the second time Draper Esprit has backed Crowdcube. Photograph: iStock
Draper Esprit, the Dublin- and London-listed tech-focused venture capital firm, has led an £8.5 million (€9.73 million) investment in Crowdcube, one of the largest online crowdfunding platforms in the United Kingdom.
This is the second time Draper Esprit has backed Crowdcube. It took part in a £6 million (€6.87 million) funding round in 2015.
Crowdcube, which has facilitated more than 100 fundraises of £1 million (€1.15 million) or more, is to use the new funding to further expansion both in the UK and overseas.
More than £500 million (€572 million) has been made in pledged investments on Crowdcube in start-ups since it was established, including in well-known companies such a Brewdog, Monzo and Revolut.
It has also proven popular with Irish start-ups, with Buymie, HouseMyDog, Lightly Technologies and See.Sense, among the companies to raise funds via the platform.
The funding comes as Crowdcube achieved a record quarter for revenue, reporting £1.6 million (€1.8 million) for the third quarter, up 60 per cent on the same period a year earlier. Investment pledged through the platform in the July to September period increased by 97 per cent.
Annual revenue for Crowdcube is forecast to rise to £6 million (€6.8 million) in 2018, up from £3.9 million (€4.4 million) a year earlier.
“Crowdcube has demonstrated significant progress and impressive growth in the last 12 months. They have a proven and scalable platform, seven years of unrivalled experience, strong brand awareness and a clear market opportunity in the UK and abroad,” said Simon Cook, chief executive of Draper Esprit.
“They are the world’s leaders in equity crowdfunding, and I expect them to continue blazing a trail of innovation and success,” he added.