Crowdcube, the funding platform, has seen its turnover halve during its most recent financial year as it continues to operate at a loss. The London-based firm reported a turnover of £7.5m for 2023, according to accounts recently filed with Companies House.
This is a significant drop from the £14.4m turnover posted for the 15 months ending in 2022. These figures were revealed in accounts submitted to Companies House well past the 30 September deadline, as reported by City AM.
The accounts also indicate that Crowdcube made a pre-tax loss of £6.6m this year, compared to a loss of £8.9m in 2022. In the UK, Crowdcube’s turnover fell from £12.9m to £5.9m in 2023, while earnings from the rest of Europe slightly increased from £1.4m to £1.5m.
During the year, Crowdcube liquidated its Swedish operations “in order to focus on other parts of the European market”. The company also acquired France-based Semper SAS for £2.9m.
A statement approved by the board read: “The company and its subsidiaries remains focused on capturing market share in the equity funding market in the UK and EU and is expecting revenue growth in the financial period ended 31 December, 2024.”
This news follows rival Seedrs experiencing a 10 per cent fall in its revenue after fewer deals and less investment were made through its crowdfunding platform in 2023.
The company reported a revenue of £6.1m for the 12 months, a decrease from the £6.8m it posted in 2022. Seedrs also experienced an increase in its pre-tax loss from £9.6m to £9.9m in 2023.
The firm was acquired by US-based equity crowdfunding platform Republic in a $100m (£76.6m) deal in 2021. In July, Seedrs announced it would begin trading under a new name – Republic Europe.
