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Seedrs and Crowdcube lead the sector and during the first quarter of 2021 half of the offerings were conducted by Seedrs with Crowdcube only slightly behind with 47% of the campaigns. Just 3% was raised on other platforms. Seedrs raised a bit more capital raised at 56% of the total vs. Crowdcube at 44%.
The report states that approximately £75 million was raised in Q1 with the majority (75%) of offerings attracting over 250 investors. Over 64,000 individual investments were completed during the quarter.
Of interest during the quarter:
- Landbay raised the single largest amount at £5.1 million on Seedrs. Landbay has utilized online capital formation for years now and this marks its 11th offering having raised £14 million with its valuation going from £616,00 in 2013 to £50 million in January.
- Orbital Marine Power generated the most investors at more than 3000 individuals raising £2.6 million
- Two successful exits were reported:
- Senta, following two offerings on Seedrs (2015, 2018) acquired by Iris Software Group
- ZigZag Global, a Crowdcube’s alumni from 2015 acquired by Global Blue
Equity Crowd Expert predicts the market will not slow down during Q2 as there are currently 74 live offerings seeking £66 million. The average offering is £300,000 with an average valuation of £4.1 million.
The crowdfunding market is unlikely to slow down next quarter with 74 open campaigns targeting £66m. These campaigns have an average target of £300,000 (median) and are valued on average at £4.1m (median)
Etienne Paresys, founder of Equity Crowd Expert, predicts that in spite of the failed merger the two platforms remain busy but ultimately they need to generate a net income:
“…what equity crowdfunding really needs is more exits and success stories to motivate the crowd and attract the right businesses.”
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