Crowdcube channeled 17 million to Spanish companies in 2021, 150% more

Crowdcube, the British investment platform retail in private companies, it channeled 17 million euros to Spanish companies in 2021, which represented 150% more capital than in 2020, and it did so through 13 operations. The average size for each transaction reached 1.27 million euros.

Since Crowdcube began its operations in Spain in 2014, more than 35,000 investors with a retail profile and business angel They have invested a total of 63 million euros in 123 local operations. In 2021 alone, the well-known platform of equity crowdfunding made possible some important investment rounds of the Spanish entrepreneurial ecosystem such as Heura Foods, Wuolah, Velca, ID Finance or TropicFeel. Last year, an average of 604 investors participated in each of the Spanish operations, of which 50% are Spanish and the rest from an average of 70 countries.

These figures show that Spain continues to be a “central node” for Crowdcube, both due to the contribution of the Spanish market to the company’s global performance and because the platform’s headquarters in Barcelona remained the “spearhead of its marketing strategy”. growth in Europe”, as he explains to Five days Azahara Mirror, Director for Spain of Crowdcube.

The directive highlights that these results occur in a context in which Spain has established itself as the fourth European market with the greatest activity of venture capitalbut also in which both companies and funds are increasingly showing a greater willingness to incorporate “tranches crowd to rounds aimed at professional and institutional investors”.

A trend, says Espejo, that responds to a double finding: “On the one hand, having a network of retail investors in the capital of a company using our legal vehicle improves and facilitates its governance and, on the other, allows the construction of a community of authentic fans of the brand who not only consume its products and services, but also participate in its growth”.

On “this increasingly porous barrier” between professional and participatory rounds, in 2021 Crowdcube offered its investors the possibility of co-investing with venture capital funds in 85% of its operations.

Mirror insists that, although it may seem that the venture capital and retail investors are incompatible, the reality is that collaboration between the two is becoming very common in the United Kingdom and Europe. “It is an upward trend, since the venture capital increasingly understands better the value of incorporating the retail investor in companies of its portfolio”.

Azahara Espejo: “Collaboration between ‘venture capital’ and retail investors is becoming more and more common”

At a European level, in 2021 Crowdcube channeled 295 million euros to 262 companies and doubled the size of its team, going from 60 to 120 professionals. In December, it also closed a round of its own investment of 14 million euros led by Circle, Owner and operator of SeedInvest, one of the largest platforms in the US for financing startups in that country.

“The improvement in our results in 2021 has been due to the acceptance of this financing methodology by companies. We have been doing larger rounds for larger companies”, underlines the directive, which points out that just as investors are told that they must diversify in companies, “we also tell these that they must diversify in investors. We want them to understand that the value that a venture capital and a business angel It is enormous, but so is the value that a thousand investors can bring to it because they believe in its brand”.

Mirror highlights the case of Heura, the Spanish plant-based meat startup, who launched a campaign crowdfunding on June 1, 2021 and closed it the next day having raised 4 million. “It’s one of those companies that doesn’t need the validation of a professional investor because its community (its own customers, who are already fans) believes in it so much that they invest in it. And the curious thing about it is that after announcing that they were going to do this round, some boyfriends [inversores] professionals and tickets largest interested in investing. Thus Heura captured another 14 million that same month in a round led by Impact Fooding.

According to the directive, Crowdcube creates a channel that serves to capitalize on companies by providing them with two important values: “The loyalty of their investors, which will help them grow, as they will become authentic ambassadors of the brand, and the visibility that being on an international platform like ours with 1.2 million individual investors from different countries”.

Mirror points out that the recommendation that makes them most excited is when a company already has a venture capital within his capital and it is he who asks that company to do part of his new round of financing through equity crowdfunding. This happens more and more, because it is not the same to say that you have convinced a venture capital to invest in you to say that 4,000 people have decided to invest in you. This is a full-fledged market validation.”

“The value that a venture capital It is enormous, but also the one that contributes a thousand investors who believe in your brand”

Crowdcube, which has a team of 10 people in Spain (it plans to close the year with 15), offers companies to group their investors under a vehicle that acts as a legal representative, thus facilitating the subsequent management of retail investors and allowing the capture of foreign investors without the need to require a NIE (foreigner identification number).

“We are strongly promoting geographic diversification within the platform. For a long time, 90% of the investment opportunities that appeared on Crowdcube were from the United Kingdom, but currently around 30% of the companies are Spanish,” continues Espejo, who account that the platform is focused on European expansion and the launch of new products.

Regarding the former, this year they have opened offices in Paris and Stockholm and plan to close “interesting operations” especially in France, a strong market for investments in startups, “but where the crowdfunding Little has been explored,” he explains. Regarding the new products, he points out that they recently launched one to make secondary rounds, “and it is being well received.” They have not yet done any in Spain, but he assures that there are many companies interested in the country to explore this opportunity.

Despite the current economic uncertainty, Espejo is confident that this year Crowdcube will break records again. “Our estimates are very good considering how the first quarter has gone. The increase in our team will allow us to reach more companies, and also the new European regulation from crowdfunding will benefit all platforms equity crowdfunding“. The directive also believes that in times of uncertainty “investors with large tickets are usually more reluctant to invest than those with small ones, who often invest in companies with which they not only have a rational but also an emotional relationship. . And now on the platform we have many companies from social impact sectors.”

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