Wednesday, 3 August 2016

Brexit hits investment into equity crowdfunding

As predicted here, the Brexit vote has slowed the money coming into equity crowdfunding pitches, research from Beauhurst shows. 

This is something we noticed almost immediately the result was announced. Investors we talk to and companies that had asked for our help with their campaigns, started to pause and many have now put it all on hold.

The total uncertainty as to what Brexit means and what the end result may look like is a killer for inward investment in what is a very high risk sector at the best of times. That, coupled with the lack of any real ROI after almost 6 years and an increasingly large wave of collapses and scandals, is taking its toll on the armchair investors brigade.

Crowdcube's now stalled cash grab is proof. 

They raised £6m in 24 hours when they opened (much of it pre pledged) but have only managed another £750k in the two weeks since - despite valiant efforts by Luke Lang's PRing Dept to pick up the beat. Even Luke cannot beat investor sentiment and their brash claims now look slightly foolish. Beauhurst found that the total number of investments offered across the various platforms had fallen by 17% in the first half of 2016 compared to the same period in 2015. 

With no end in sight to the void in information that our government has now hoisted upon us, things are likely to get much worse before they get better. 

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