We like data!
We are a data driven organisation and you will not be surprised to hear we are collecting lots of useful data on all the campaigns that we are covering.
Every few months we provide some useful statistical information which we think you will find helpful.
In the meantime here are some highlights from the data we have collected since we launched in September 2015:
So what has happened between May 2015 and now?
- In the last 11 months we monitored 678 campaigns that have opened and closed on the top 12 platforms seeking a total of £250m of which £196m was pledged and at least £145.5m actually raised.
- On average 55% of campaigns succeeded, although success rates on Venture Founders and Syndicate Room were 78% and 72% respectively.
- Of the campaigns that overfunded, the average funding amount was 134% of what was offered.
- Of the 678 campaigns 390 were seeking £250,000 or less. Of these 210 succeeded in raising the money they wanted or overfunded.
Popular sectors - as you might have guessed!
- The most popular sectors were Technology and Food & Drink which accounted for 106 and 100 campaigns respectively. The success rate for Technology and Food & Drink were 58% and 69% respectively. The next most popular sectors were Professional & Business Services (76 campaigns), and Retail (63 campaigns) and Internet (61 campaigns).
- Interestingly Technology and Food & Drink take 39% of all monies raised.
- There has been an interesting development at the top end of the market. The top five platforms by amounts raised are now Crowdcube, Seedrs, Syndicate Room, Venture Founders and Crowdbnk. They achieved 93% of the funds raised, but just under 90% of equity offered, suggesting perhaps that the smaller platforms are gaining attention as a source of funding from entrepreneurs, but not from investors!
- It will be interesting to see over the next few months whether the smaller platforms begin to become more successful at raising funds for their clients? Currently success rates on the smaller platforms range from 13% to 54%
The top five platforms have 93%+ of the market by funds raised
Don't be too greedy on valution but do try to raise as much money as you dare.
It remains true that most companies achieving significant overfunding (>50%) are valued at £2m or less.
If you try to raise £1.25m or more you have a 76% chance of hitting your funding target, but if you try to raise over £2m you chance drops to 67%. If you try to raise upto £1.5m you chance is only 54%
So what happened ?
- On all the platforms we have monitored since April, entrepreneurs have launched campaigns trying to raise a total of £54.5m. £55.9m has been pledged, but only 53% of campaigns succeeded. So what happened?
- The answer is that those who succeeded in meeting their funding target also tended to overfund by 43%
Where do campaigns stall or succeed?
- When it comes to campaigns that fail, typically they struggle to raise more than 1/3rd of the amount they are seeking, except on Syndicate Room where they tend to get to 2/3rds of the way before they stall and stop
- Of those campaigns that succeed, those on Crowdcube overfund by 64% on average - 12% more than Seedrs. However, on Seedrs the average amount of funding (including failures) is 120%, vs 101% on Crowdcube.
Crowd funding campaigns currently have a better than 50:50 chance of succeeding
- As a percentage of total campaigns launched, Syndicate Room has the highest pass rate - 67%, Crowdcube and Seedrs are seeing pretty similar success rates on their platforms with just under 55% of campaigns meeting or exceeding their targets. So it is probably pretty safe to say that an equity crowd funding campaign has a better than 50:50 chance of succeeding.
The top three platforms (between April and now) have 95%+ of the market
- Crowdcube, Syndicate Room and Seedrs host 95% of the market by requested funds, and 97% by raised.
There is a relationship between valuation and overfunding
- Most companies with significant overfunding (>50%) are valued at £2m or less.
Go big or go home?
- If you try to raise £749,992(!) or more you have an 80% chance of hitting your funding target. If you raise £749,991 or less you have 50% chance of your campaign being successful.
We will be publishing other interesting facts and figures from our data SOON, so please check this page regularly.