crowdcubethe UK’s leading online investment platform, has recently released an update. Candidate StructureIt helps in capital formation on the platform. At the same time, Crowdcube declared that “the line between public and private markets is disappearing, and with it value creation is shifting earlier in a company’s life.” Crowdcube is not at fault.
According to its data, Nominee structures currently hold £1.3bn worth of securities in 979 companies. Approximately 450,000 investors own shares of the Candidate. Crowdcube states that investors in more than 100 countries participated in its offerings.
Crowdcube reported that the value of these securities has grown by 40% annually since 2018, outpacing European venture capital markets, which have grown by 29%.
The Nominee Structure simplifies share management, making the sale of smaller shares more attractive to companies seeking growth capital. Many shareholders appear as a single line item in the capital statement. Shares can still be bought and sold. Crowdcube reports that more than £210 million has been returned to investors since its inception.
While many of the companies included in the nomination started at an early stage, Crowdcube is expanding access to private securities for individual investors by adding more mature firms to its platform.
Of course, all securities carry risk, and smaller, younger companies tend to be riskier. However, it is the investor’s responsibility to do their own due diligence and determine which offer is best for them. Crowdcube is expanding access to a key asset class, and expectations are that private markets will grow as technology improves access to capital and opportunity.
