In the third quarter of 2019, crowdfunding platform Crowdcube’s revenues rose to £2.2m despite the UK’s upcoming divorce from the EU.
This is the first time the British funding firm has passed the £2m revenue milestone and the seventh quarter in a row that the company has grown. During the same period, there were 62,000 pledged investments on the platform, representing an increase of 73% compared to the third quarter of 2018.
Luke Lang, co-founder and CMO of Crowdcube, said, “Our fantastic third quarter results show that it is possible to thrive in spite of the gloomy economic backdrop in the UK and Europe. Ambitious businesses who want to leave their mark on the world and build meaningful relationships with their communities can have staggering success.
“Companies like Curve, Chip, Grind and JustPark, who communicate a purpose beyond the next sale, and ask their customers to join them on an adventure will set the benchmark for a fresh standard of business.”
The company’s success comes as the UK is dealing with the fallout of a potential Brexit on October 31. Britain potentially leaving the EU around Halloween has caused a lot of uncertainty about the UK’s position as a European FinTech leader.
Industry stakeholders have expressed concerns that they will not be able to source talent and that London’s ability to compete with other innovative hotbeds around the world will be diminished.
And there are reasons for concerns as the Financial Conduct Authority’s (FCA) chief executive Andrew Bailey announced in September that there are still a lot of issues to solve to ensure a smooth Brexit.
The FCA has issued an update to what financial services firms need to be aware of before the country’s conscious uncoupling from the EU in case of a no-deal Brexit.
Similarly, banks are worried because some of the EU rules that are coming into force in over the next few months have not been implemented in UK law yet. This would mean that British businesses would not be able to rely on the EU’s equivalence system to trade on the European market as its unclear whether British laws would be equal to those in the EU.
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