Monday, 20 June 2016

Can Crowdcube ever get into profit?

Crowdcube need revenues of over £6m just to cover their costs.

Crowdcube's last accounts, showed they are now spending over £6m a year on administration.

So if they are charging on average 8% per successful pitch (a figure which probably optimistic), this means they have to see around £75m of pitches funded through their site before they get close to making any money.

Just as a snapshot, the site today has an estimated £3.76m of successful pitches sitting on it - ones that are over funding and ones looking likely to succeed. Annualised, this would return revenues of just £3.6m. Way short of the required number.

You have to ask, how is it ever going to make a profit?


  1. Only if they drop the quality of their pitches drastically and focus on short term profits by pushing through poor businesses whilst building a database of retail investors.. oh.. wait...

  2. Rob, you commented on Droplet pitch on crowcube several months ago. it's now published on syndicateroom. how did you find the different between the 2 pitchs?