#ABMSaaS series | What a CEO might need? | Crowdcube.

When you get to pitch your start-up to investors, no dress code required, but you might want to show your CEO's DNA in a structured way with a hint of scientific humor. Get your #Founder Tee on #My247basket and then login with #Crowdcube!

CROWCUBE

Crowdcube is a British investment crowdfunding platform. It was established by Darren Westlake and Luke Lang in 2011.

In February 2013, Crowdcube received authorisation from the Financial Conduct Authority (FCA) to offer investors the opportunity to become direct legal shareholders in UK businesses.

EQuity based Crowdfunding

Equity based crowdfunding is a new fundraising model for entrepreneurs. Individuals' investments are pooled allowing entrepreneurs to secure funding directly from the general public, bypassing business angels and banks.

The key principles of this model are that anyone can invest money in return for equity in a business. 

Entrepreneurs, with a UK registered company, can present their business and its investment potential to potential micro-investors by uploading a Dragons' Den style video pitch, images, and supporting documents. The minimum investment can be as little as £10.

Crowdfunding as a model for fundraising has become more popular over the past few years with the rise of the US-based Kickstarter and Indiegogo. These platforms differ from Crowdcube as they work on a donation and reward-based model where the donor receives a tangible object such as a DVD or piece of artwork in return for their donation

Successful exits

In July 2015, E-Car Club, an electric vehicle rental business championing the future of the green sharing economy, produced the first exit from the CrowdCube 'Funded Club'. 

E-Car received a significant investment from Europcar, Europe's largest vehicle rental business. E-Car club has joined the newly formed Europcar Labs project, which has been set up by CEO Philippe Germond to focus on 'mobility solutions'.This is Europcar's first acquisition since its IPO on the Euronext in early June 2015. 63 original investors in E-Car Club via Crowdcube benefited from a multiple return on their investment.

In December 2015, it was announced that Camden Town Brewery was being bought by the world's largest brewer, Anheuser-Busch InBev. In a letter to Crowdcube shareholders, AB InBev were offering a payout of between £1.0861 and £1.2526 per share, depending on whether they accept an option with a variable element based on sales growth to be paid at a later date. Reports said this was a nominal return on investment of just under 70%, implying that AB InBev paid around £85 million.