Partnerships director Jonathan Keeling says the upward trend of pitches and investments signals the crowdfunding community is adapting to ‘a new normal’
Crowdcube, the British investment crowdfunding platform, has reported that funding activity is on the up as the UK adjusts to a ‘new normal’.
Partnerships director Jonathan Keeling said April 2020 investment into live pitches was £9.2m, up 58% versus March. The figure, 15% down on the same period a year ago, heralds “a positive sentiment is beginning to return with the average daily investment now over £300,000”, he said.
Keeling described the investment activity on Crowdcube plummeted in March. Investment through the platform in March was £5.9m, down 60% year on year. “Although the slowdown in investment was steady when compared to public markets, and there were a number of raises to celebrate such as Chip closing £2.6 from their community, the knock-on effect to founder confidence in the ability to raise finance was certainly hit.”
Crowdcube has seen a positive start to May with £2.7m invested in the first 10 days, and Keeling noticed a significant demand for sustainability focussed, health, wellness, and climate change-focussed companies.
For Keeling, the drop in investment activity was not due to a lack of investor appetite but founders confidence in raising finance at a time the focus was on putting in place plans to weather the impact of Covid-19.
“At the time of writing, four sustainability-focused companies, Pawprint, Clim8 and Almond Impact, have raised over £2.5million from nearly 3,000 investors,’ he said.
Keeling said the demand from retail investors for high impact, socially conscious companies skyrocket. “Sustainability, climate, health and wellness will certainly be big categories, but I also think with the latest government announcement to accelerate the uptake of cycling and walking in our cities, general smart city/transport and mobility innovations will also be big.”
For Keeling, investment appetite remains agile for the right business. “Companies just need to regain that confidence to go out and ask for it!” he concluded.
Date published: 13 May 2020