Crowdcube announced last week its expansion to the Nordics, enabling companies to raise up to 13 million euros from individuals across Europe, and will be the first international platform to operate under new EU regulations.
In November 2021, new EU regulation came into effect, harmonising for the first time the existing patchwork of crowdfunding regulations across Europe. Crowdcube said it was the first platform to operate under the new EU regulations, meaning that Nordic companies will now be able to raise up to €13m from retail investors, via Crowdcube, in a single offering of either primary or secondary shares (€5m from European investors and €8m from UK investors).
“We are a complement to VC’s and the Nordic startup scene is highly innovative and we are excited to finally launch here. The new EU regulation unleashes huge potential for Nordic growth companies that want to convert their best customers into investors and drive engagement, loyalty and advocacy from their communities,” said Mikael Angesjo, Regional Manager at Crowdcube.
Since its inception in 2011, having raised €1.2bn for 1,130 UK and European businesses like Revolut, Cowboy, and Citymapper from a community of over 1.2 million retail investors, Crowdcube brings its experience and community-building to new markets across the continent. Crowdcube has played a significant role in both Revolut’s and Monzo’s financing rounds.
In Monzo’s case, the company has raised over €23 million from nearly 50,000 individuals via Crowdcube. For individuals who had invested in the first crowdfunding round in 2016, their shares would have increased in value 28x. From Monzo’s side, the retail investors are some of the company’s most valuable and committed customers, who on average are 43% more active and almost three times more likely to refer new customers to Monzo.
In the Nordics, Crowdcube sees great potential to help fast-growing fintech companies supplement their A, B or C rounds with capital from individuals. Crowdcube also hopes that impact companies see the great benefits of letting individuals participate and support companies that they believe in by offering co-ownership.
“As the world’s first and leading crowdfunding platform, we have over a decade of knowledge and expertise, which we can now use to support businesses on the Nordic vibrant startup scene. Crowdcube’s launch in the region is the latest step in our plans to expand into new markets across Europe, and we’re hugely excited to give Nordic founders access to a new source of investment,” Darren Westlake, CEO and Co-founder of Crowdcube, said in a statement.