We're used to reading stories about successful equity raises on Crowdcube - there were 29 of those in the first quarter of 2017, raising around £23 million. But Exeter's equity boys just published their latest annual report, which tells us what the company looks like from the point of view of the equity platforms owners, rather than its customers.
The headline figure in all the reports - and a very tasty figure it is too - is that revenues are up 48% for the year ending 30th Septemember 2016. Turnover was £2,691,422 in the year ended 30-09-2015 rising to £3,974,464 on the 30th of September 2016. By a happy co-incidence, 48% is also the share of the UK equity crowdfunding market that Crowdcube claims.
A relatively small contribution - £96,312 - came from Crowcube's Spanish subsidiary.
Crowcube is losing money - over £5 million a year for the second year running - but according to CFO Bill Simmons, quoted in Business Insider this morning, this is keeping the platform "on track to maintain our upwards growth trajectory." The accounts show staff employed went up from 54 to 85 during the financial year.
Simmons also said "Crowdcube’s increase in revenue is representative of our continued growth, as well as the growing popularity of equity crowdfunding, which for many is now the first choice when it comes to raising finance.
"A huge factor of our success has been the increase in later-stage, often VC-backed businesses, choosing Crowdcube as their partner to fund larger rounds."
The annual report lists three risks to the continuing success of Crowdcube. These are:
- Competition Risk
- Regulatory Risk
- Brexit Risk