British investment crowdfunding platform Crowdcube announced that they are expanding in the Nordic region which means an alternative source of capital for startups. One can raise up to 13 million euros from all over Europe. Under new EU regulations, this made a mark for itself as the first-ever in terms of international funding platform, which is equity-based. Up until now, the platform has gathered €1.2bn in total.
Established by Darren Westlake and Luke Lang in 2011, Crowdcube has been maintaining its operations with investors from over 100 countries, including Spain, Ireland, Italy, Australia, and Germany outside of the UK. Now, with this new movement, the British platform is expecting to help fast-growing fintech companies in the Nordics and back their A, B or C rounds with capital from individuals.
International Crowdfunding platform Crowdcube launches in the Nordics
The launch marks a new model for funding for the Nordic tech scene
As of today Nordic companies can raise external capital of €13m
from individuals from all over Europe, in exchange for equity
Stockholm, Sweden – Crowdcube today announces its expansion to the Nordics, and will be the first international platform to operate under new EU regulations. The launch of the company means that the Nordic startup scene will get an alternative source of investment, where companies can raise up to €13m from individuals from all over Europe.
The UK and US have historically been the most developed markets for equity-based crowdfunding, meaning that individuals (retail investors), along with VC’s, angel investors and institutional investors, can invest in private companies in exchange for equity.
In November 2021, new EU regulation came into effect, harmonising for the first time the existing patchwork of crowdfunding regulations across Europe. Crowdcube is the first platform to operate under the new EU regulations, meaning that Nordic companies will now be able to raise up to €13m from retail investors, via the platform, in a single offering of either primary or secondary shares (€5m from European investors and €8m from UK investors).
“We are a complement to VC’s and the Nordic startup scene is highly innovative and we are excited to finally launch here. The new EU regulation unleashes huge potential for Nordic growth companies that want to convert their best customers into investors and drive engagement, loyalty and advocacy from their communities.
The Nordics has a great number of companies that can benefit from topping up their investment rounds from thousands of retail investors, and at the same time build a committed community of ambassadors, says Mikael Angesjo, Regional Manager at Crowdcube.
Since its inception in 2011, having raised €1.2bn for 1,130 UK and European businesses like Revolut, Cowboy, and Citymapper from a community of over 1.2 million retail investors, Crowdcube brings its experience and community-building to new markets across the continent. It has played a significant role in both Revolut’s and Monzo’s financing rounds.
In Monzo’s case, the company has raised over €23 million from nearly 50,000 individuals via the platform. For individuals who had invested in the first crowdfunding round in 2016, their shares would have increased in value 28x. From Monzo’s side, the retail investors are some of the company’s most valuable and committed customers, who on average are 43 percent more active and almost three times more likely to refer new customers to Monzo.
In the Nordics, Crowdcube sees great potential to help fast-growing fintech companies supplement their A, B or C rounds with capital from individuals. The equity-basd crodfunding platform also hopes that impact companies see the great benefits of letting individuals participate and support companies that they believe in by offering co-ownership.
“As the world’s first and leading crowdfunding platform, we have over a decade of knowledge and expertise, which we can now use to support businesses on the Nordic vibrant startup scene. Crowdcube’s launch in the region is the latest step in our plans to expand into new markets across Europe, and we’re hugely excited to give Nordic founders access to a new source of investment”, says Darren Westlake, CEO and Co-founder of Crowdcube.
The European marketplace for retail investment into private and public companies, Crowdcube enables entrepreneurs to raise finance with the added benefit of being backed by their community. For investors, the company provides a way to hand-pick a stake in an innovative business they believe in that traditionally would have been restricted to professional investors.
Since it was founded in 2011, it has funded over 1,130 deals. With over one million members, a total of €1.2bn has been invested on the platform to date.
Businesses that have successfully raised funds with the platform include Revolut, Monzo, BrewDog, Citymapper, Cowboy, Heura Foods, Freetrade (primaries and secondaries), eCar Club (acquired by Europcar), Camden Town Brewery (acquired by AB INBev, Feedr (acquired by Compass Group), Mindful Chef (acquired by Nestle), Pod Point (acquired by EDF) and Nutmeg (acquired by JP Morgan).