If you live in the U.K. or the U.S., you are familiar with equity crowdfunding. Few French startups use their community of users to raise new funding. Crowdcube plans to change things up as it launches on the French market thanks to recent regulatory changes.
You may have seen a recent campaign in the French tech community. I covered the Series A round. The company wants to change private banking to include financial recommendations.
Part of its Series A was going to be raised via Crowdcube. It makes sense that the platform is a wealth management platform.
In 21 minutes, the startup raised 2.17 million dollars from 983 users of the financial service. People could invest from 10 to 5,000 dollars. They invested an average of 2,200 each into the company.
Qonto will be the next French campaign. Qonto is one of the highest valued French startups. Small and medium companies based in Europe can use the company's business bank accounts. The startup raised $5 billion in a Series D round earlier this year.
Qonto is focusing on its user base in France, Italy, Spain and Germany, as there might be a lot of interest for such a well-known company. Qonto customers can pre-register until April 19th.
The community aspect of equity crowdfunding is more popular with companies than the raising part, according to Crowdcube Country Manager France Pauline Pham.
Crowdcube has a track record in other countries. Monzo, Cowboy, and Freetrade are some of the better-known startups that have raised money through Crowdcube. These are consumer startups with a lot of users.
The company doesn't want to restrict its platform to trendy tech companies.
Finary wants to reimagine private banking
Business banking startup Qonto raises $552 million at $5 billion valuation
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