It was a busy few days of networking for me as an independent crowdfunding adviser in London in November 2016. This is the first of a two part recap of 19 equity crowdfunding pitches at five events I attended in eight days that show the diversity of businesses working towards a brighter future through this route to funding for startups and scaleups. These events were free to attend and if you are an entrepreneur considering equity crowdfunding I’d say they are an indispensable research opportunity. Get out there and get involved!
The run of five events began with a busy evening of eight live pitches organised by Crowdcube, the UK’s largest equity crowdfunding platform, at the green and leafy Barbican Centre Conservatory. Crowdcube co-founder and CMO Luke Lang introduced the speakers to an audience made up mainly of personal investors, professional service providers such as myself, and some other entrepreneurs who were considering their own crowdfunding campaign and wanted to get some tips and make some useful contacts.
The sums of money sought by these companies ranged from £250,000 to £1.75m. Some were about to start their crowdfunding while others were nearing the end and chasing the final amounts of money to reach their target. The companies and range of business sectors covered were:
- Clive Jackson of Victor, a private jet charter business for high net worth individuals. In early November they were seeking £1.75m. By 29 November they had reached just 3% of target, and the campaign can no longer be found on Crowdcube’s site.
- Bluebella, an upmarket lingerie brand that more than doubled its £500,000 target when it went on to raise over £1m.
- MUSH, a social media platform for mums to find others with kids of the same age. They were targetting £650,000 for 15.66% and had raised over two-thirds of it in the first week. By December 5 they had overfunded to almost £850,000.
- AltFi, a media platform that reports on the alternative finance market. They were offering 7.69% for £250,000.
Thankfully there was also a craft brewery seeking investment, Innis & Gunn from Scotland, who went on to successfully smash their target of £1,005,000 and eventually raised almost £2.5m from 2,000 investors for 4.79% equity. Plenty of samples were available during the evening while the crowd of potential investors also heard pitches from:
- StepJockey, a company that encourages office workers to take the stairs and get fitter (resulting in a reduction in staff sick days). Targetting £500,000 for 11.76% equity. Currently used in more than 11,000 buildings around the world by clients including Disney, Pearson, JLL, UBS, Channel 4, NBC and The Wellcome Trust. Raised £279,290 in four weeks after launch, though no details available on the full outcome. Crowdcube don’t like to keep details online of the projects that fall short.
- Happy Finish, a creative technology and visual content agency seeking £395,000 for 4.45%. No details still available on the Crowdcube site, have to fear the worst that they failed to reach target.
- Hurree, a marketing automation platform seeking £300,000 for 20% equity. Their crowdfunding closed on 16 December and 187 investors backed them to the tune of £320,290
A few days later I was at an event organised by Crowdfinders. They are not a crowdfunding platform though they do help companies secure their first 30% of investment offline. They also organise events featuring live equity crowdfunding pitches with real-time investment opportunities, and also deliver industry insights and provide “extraordinary entertainment.” And just to emphasise that money invested through crowdfunding is at risk they held their event in a central London casino.
The audience saw pitches from four companies seeking investment, with some unusual half-time entertainment. The target investment levels ranged from £150,000 to £500,000.
- ScreenLimit Ltd, a parenting app to remotely manage children’s use of electronic devices. Seeking £300,000 of angel investment for 20% equity.
- FUBAR Radio, an irreverent online radio station targetting 18-34 year olds and operating outside of OFCOM’s regulatory content controls. Set themselves a minimum target of £250,000 for 8.3% equity which they achieved, up to a maximum overfunding target of £500,000 that they are still chasing to 31 January 2017 on the Envestors platform.
- Sense Products, produce a range of supplement products that includes one to “enhance the body’s response to drinking.” Seeking £350,000, the project closed at the end of 2016 having received £40,000 of pledges.
- 365 Talent Portal, an online community and career hub for Microsoft technology consultants and companies looking to hire them. They had a target of £150,00 and closed 31 December 2016 after receiving pledges of £65,614.
Event Three was an opportunity to view equity crowdfunding more through the eyes of investors than entrepreneurs when I went to the offices of Kingston Smith, a firm of chartered accountants and business advisers to entrepreneurial businesses, not-for-profit organisations and private clients. A panel of four included Kingston Smith’s Corporate Finance Director and their Partner and Head of Technology, along with Jonathan Keeling, Head of Partnerships at Crowdcube and Amer Hasan, CEO and founder of minicabit.com which raised £1.4m from investors in 2015. He had previously reached a £150,000 target through equity crowdfunding on the Seedrs platform in 2014.
Commenting on the overall UK business investment market, Kingston Smith reported that:
- In the first nine months of 2016 over £1 billion has been raised by UK private companies in equity raises of over £1 million
- Institutional fund managers account for the majority of activity by value
- Technology and online business sectors continue to dominate
- There was no slowdown in Q3 after the Brexit vote and prospects for 2017 are good
There were no live equity crowdfunding pitches at this event, though here is a link to Part 2 of this two-piece recap of business investment events with another 7 equity crowdfunding pitches.
If you are considering equity crowdfunding and want to talk with an independent crowdfunding adviser not tied to any particular platform, or maybe you’ve already decided to go ahead and want to get a second opinion on some aspects, please e-mail me at [email protected] or send a Tweet to @Cliveref.