Crowdfunding update #2 May 2020

Updated: Sep 13

Crowdfund update #2


This has been a busy month! You've probably heard about Freetrade's monster campaign, raising £5m in a day, but here's a bunch you might not have heard.


Before we dive into this update though.. let me introduce... the Crowdfeed app!


//Download the Wix app and use invite code “6M1FGU” for a slicker crowdfeed mobile experience.


// PSA: this blog post contains referral links


Exit


🎉🥳🎊Congratulations to Anna money investors, who received an exit offer of 40% ROI following an institutional round of ~£17.5m, valuing the company at £90m. They crowdfunded just ~7 months ago on Seedrs.


Live campaigns

  • Designable. Spanish design/construction startup. Invest here.

  • Yellowdog. (Multi-)Cloud computing startup. Invest here.

  • Trezeo. Fintech geared towards the self employed. Invest here.


Upcoming campaigns

  • Coconut - Openbanking fintech for the self employed.

  • Kokoon - Headphones for snoozing. Think beats by dre meets Casper.

  • Yayzy - App using openbanking to guide carbon footprint. Think strava for climate change. Pre-register here.

  • Artfinder - An art marketplace; grew 110% in April alone. Ebay meets Deviantart. Pre-register here.

  • West berkshire brewery - Microbrewery from the South-East. Brewpuppy rather than Brewdog. Pre-register here.

  • Airsensa - Big data startup tackling air pollution. Palantir for pollution. Pre-register here.


💡 Pre-emption campaigns are intended for existing investors who have received ongoing updates of a business' progress prior to the campaign. Therefore, there is often not that much information given; please be mindful of this!


Head to the forum for a deep dive (publishing this evening) on Hargreaves Lansdown, which includes a take on “What would happen to Freetrade if Hargreaves Lansdown cut their trading fees to zero?”


Patch plants (Amazon for plants) is killing it, with 500% sales growth month on month. They have experienced supply chain issues with their plant pots and accessories (~1/3rd of sales), their 30-40 holland-based plant suppliers (growers) are fairing well however.



From Patch Plants 😍😍😍


Cowboy’s (Tesla for ebikes) Q1 sales were up 230% YOY. The average rider journey was 5km, for a total of 1km travelled 1km in April alone; this represents an 800% increase YOY and a 100% increase on pre-lockdown figures. More so, their user ratings have peaked at 4.4 based on 1k reviews. Intererestingly, Cowboy rival Vanmoof raised ~£10m from Crowdcube’s VC investor Balderton (Revolut, Depop, Nutmeg). This follows Vanmoof’s release of their ‘S3’ bike, with similar features and price to Cowboy’s. Vanmoof founder Taco Carlier has gone on record saying they may crowdfund in the future, having last done so in 2018.


Spanish lending fintech ID finance is now at 12m users, onboarding 100k users per week (up from 3m users and 40k new is 91m EUR 2019 (6m profit), forecast 187m 2020 (21m profit). Raised ~$7.5m in debt for the business (@13%). Crowdfunding round in 2021 highly likely.


It's not all good news: Squirrel financial, a savings fintech app, is set to go into administration. This follows the resignation of the co-founder, a slew of cost cutting measures (e.g. cutting headcount to one!) and several fundraising attempts.



Statistics on the recovery of crowdfunding platforms from COVID investor sentiment are now in. Please see below:


Crowdcube:


  • £9.2m invested in April.

  • Up 58% on march, down 15% YOY

  • £2.7m invested in first ~week of May (i.e. *before Freetrade)


Seedrs:


  • 45% fewer campaigns on platform

  • Investor Signups down by ~60%

  • Investment per campaign down by 50%

  • Q2 platform activity still grown ~100% YOY overall


Seedrs’ COVID survey (see last update) results coming soon. Interesting secondary market feature releases coming soon also...

That's all for now. Please feel free to download the wix app for slick crowdfeed mobile browsing, or maybe head over to the forum later this eveningg for my

mini-take on Hargreaves Lansdown (Freetrade's competitor). As always, any feedback is much appreciated, so please fire away (Please do let me know if, for whatever reason, you're not getting email alerts for blogs, etc).


Thanks to all the site members/readers who have been helpful in constructing this post - you know who you are (I hope)!


Do your own research | Not financial advice | Capital at risk


None of the content at crowdfeed is financial advice. Remember when investing that your capital is at risk.

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