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Crowdcube Shareholder Update Q1 2017

The first quarter of 2017 has been one of our strongest ever and we’ve continued to make meaningful progress with our core strategies outlined in our Prospectus. As you’ll see, we’ve published plenty of exciting investment opportunities that have proven to be highly popular with investors.

Contents

Q1 2017 Milestones

Commercial performance

Market share

Crowdcube Spain

Product

Engineering

Marketing

Partnership update

Challenges

How you can help us:

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This quarter has been our most prolific ever in terms of funding campaigns over £1m. High profile raises like GripIt, Monzo, Wild Beer, ME+EM, Cocoon and Cauli Rice have all contributed to a record month, which is a key aspect of our growth strategy.

Q1 2017 MilestonesQ1 2017 Milestones

Monzo doubled the previous record for the largest number of investors in a campaign when they returned to Crowdcube for the second time and welcomed almost 7,000 investors, who collectively invested £2.5m as part of a £22m Series C round.

These standout successes brings the total of £1m or more raises to 58, with 10 over £1m and three over £2m in the first quarter of 2017 alone.

The total amount of investment through all campaigns now tops £300m, with £233m successfully invested on Crowdcube to date.

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We celebrated our 500th successful raise recently, with 44 overseas businesses funded to date.

Our investor community continues to grow rapidly and recently passed the 375,000 milestone.

We’d also like to share some news from Crowdcube’s Funded Club, which has resulted in three exits in just three days for investors on Crowdcube:

� BrewDog has been valued at £1bn and TSG Consumer Partners, one of the world’s leading growth funds, has invested £213m for 22% of the company. Making this Crowdcube’s first Funded Club unicorn. £13m will go to buy-back shares from early crowdfunding investors, who will be able to sell 15% of their shareholding.

You can read more here.

� Celixir, innovative biotech firm, was the seventh Crowdcube-funded business to deliver returns, with a share buy-back that has provided investors with a 2.7x return on the original investment they made in 2014. Read more on that here.

� Just six months after we announced that we would pioneer secondary liquidity on Crowdcube, Mettrr Technologies has become the first company to provide financial returns for its crowd investors through a secondary share sale via the platform. Investors, who backed the tech startup in 2012 on Crowdcube, received a 9x return on their original investment after angel investors acquired a stake in the company. More on that here.

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Q1 2017 MilestonesQ1 2017 Milestones

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Q1 2017 Milestones

Luke made it onto the prestigious 2017 Maserati 100, which ‘recognises one hundred game-changing entrepreneurs’.

Both of us (Luke and Darren), were also featured in Debrett’s top 500 influential people in the UK.

We celebrated Crowdcube’s 6th birthday in February. Thank you for everyone who attended our event at Balderton Capital, it was great to see you all.

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Commercial performance:

End of 2016:

We had a very strong end to 2016 and now that the dust has settled we thought we’d share a little more detail. Analysis of businesses that launched in Q4 (Oct - Dec 2016) demonstrates how effective we are at monetising our business, which we believe is a key strength of our company compared to the competition.

Q4 Highlights include:

� Over £1m in revenue

� Over £30m invested in all campaigns on Crowdcube

� £25.6m successfully invested into businesses

� 55% funding success rate with 30 businesses funded

� An average effective commission of 4.6% for equity campaigns

� The £10m raised by BrewDog contributed to December being our strongest month on record for successful investment

Commercial performance

Start of 2017:

We finished the first quarter (Jan - Mar) of 2017 strongly with some excellent platform performance data; we’ll update you with a more comprehensive financial report in the next update but here’s a sneak peek of some of the topline data compared to the same period in 2016:

� Over £27m invested through the platform, an increase of 26% in equity performance compared to Q1 2016

� The number of new investors has increased by 108%

� Our monthly active investors has gone up 101%

� Member visits has increased by 37%

� Total number of investments made grew by 104% to over 27,000

Highlights of Q1 include:

� Revenue is expected to be over £1m

� The average amount raised has grown to over £800k for this quarter

Commercial performance

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Market share

Market share: Benchmarking our performance against the competition is important to truly understand how well we’re doing. Beauhurst, the UK’s leading independent researcher of equity investment, continues to be the most reliable source of data around equity investment and deals completed. We prefer to measure performance on ‘investment’ rather than just ‘deals’ completed, which can be highly misleading as investment has a greater impact on revenue.

For instance, lots of small campaigns raising small amounts is fine and rack up the deals completed number but it can be a vanity metric as it doesn’t have a meaningful impact on revenue, which is our focus. We believe our competitors performance is often badly misrepresented by focusing heavily on this hollow metric rather than more meaningful Key Performance Indicators. At Crowdcube we are focussed on creating shareholder value. This is best achieved by increasing investment raised through the platform combined with growth in effective commission. Lots of small deals does not create value.

Data from Beauhurst for Q1 2017, based on the amount of investment successfully invested, shows that Crowdcube has 53% of the market share.

Market share

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Crowdcube Spain:In Q1 2017, our Spanish division celebrated its best quarter since launch as it continues to go from strength to strength following its authorisation by the Spanish regulators last year.

Highlights include:

� Revenue increased by +590% vs Q1 2016 and +123% vs Q4 2016

� Eight businesses successfully raised €2.6m of investment. To compare, total investment for 2016 was €3.6m

� An increase of 534% on amount invested through the platform vs Q1 2016

Crowdcube SpainCrowdcube Spain

� Average amount raised grew from €213k in 2016 to €360k in Q1 2017

� Success rate so far in 2017 was 78% compared to 58% in 2016

� Repeated investors has also grown from 50% in 2016 to 65% so far this year

� We continue to dominate the fast growing Spanish equity crowdfunding market with over 45% market share in Q1, which is 1.7 times our nearest rival

� So far in 2017 the industry has raised €5.7m compared to €9.2m for the whole of 2016

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Product:We ran our first Product Feedback Party in March, which was an opportunity for some of our most active investors to meet the Product, Design and Engineering teams and to give us feedback on upcoming product launches. The event was very well received and we intend to run them quarterly going forward.

Here are some of the product highlights so far this year:

� Over 5,000 investments, totalling over £2.5m, have now been made using the Crowdcube iOS App since the launch at the end of September 2016

� The iOS App now accounts for over 10% of investor sessions on Crowdcube

� We have also started planning on a native Android app that we hope to deliver later this year

Current projects in development and launching soon include:

� v2.0 of the iOS App, which will bring full support for iPad devices

Product and EngineeringProduct and Engineering

� A notifications service, which will alert investors to all the activity relevant to them that has happened on the website since their last visit

� A new Company Dashboard, which will offer businesses that have funded a consolidated view of their investors across multiple rounds, and be the home to future improvements to our tools for managing investor relations

Engineering:

� Rich, our new Chief Technology Officer, has settled in brilliantly and has already had an impact on the team and its delivery capability

� Hiring continues in this area with two new members of the engineering team due to join the London office in May and June

� The Monzo raise saw another record-breaking raise last month with almost 7,000 people investing in the challenger bank. Our resilient and robust technology platform was comfortably able to cope with such a spike in usage without issue following upgrading work over the last 12 months to improve scalability

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Marketing � We’ve just launched a new content hub, ‘Explore’

on the site. A destination where you can explore the latest news, hints and tips about investing, raising finance, the industry and our Funded Club. Please take a minute to browse, comment and share articles on social media

� We received over 400 pieces of press coverage mentioning Crowdcube over the last three months including:

� Digital challenger bank Monzo just smashed another crowdfunding record on Crowdcube - City AM

� Professional investors join the crowdfunding party. Deals involving institutional investors have quadrupled in two years, says Crowdcube - FT

MarketingMarketing

Crowdcube Seedrs

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Share of voice

Source: Meltwater 01 Jan 17 - 31 Mar 17

Partnership update � In just over 12 months, our affiliate network has

grown to 350 partners, resulting in 35 funded deals and over £500k of revenue

� We’ve just launched an exclusive post funding support services for our Funded Club, titled ‘Growth Services’, which is designed to fulfil our desire to help Crowdcube funded businesses succeed

� ‘Investment readiness’ partnerships remain a focus to help improve the efficiency of getting businesses prepared to fundraise. We’ve very excited to announce that Grant Thornton are confirmed as our first national partner

� Co-funding with VC’s remains a strong industry trend of which Crowdcube are leading the charge. Most recently, Cocoon raised £2.46m backed by Aviva Ventures and Breed Reply

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Partnership updatePartnership update

2120 Challenges � Regulatory review: The Financial Conduct Authority

(FCA) is currently conducting its planned post-implementation review of peer-to-peer lending and investment-based crowdfunding regulations, which it introduced in 2014. We’ve contributed extensively to the review, which is expected to be published in the coming weeks, and have worked with Cambridge Centre for Alternative Finance (CCAF) at the University of Cambridge, which has been commissioned by the FCA to provide independent, unbiased, data-driven feedback on the industry. We see the opportunity for feedback and open dialogue about the industry as a huge positive for the long term development and maturity of the industry.

� Brexit: There is likely to be plenty of political manoeuvring and posturing in the next two years. Crowdcube has always been at the vanguard of alternative finance and we continue to work hard to ensure that Britain’s position as a global fintech leader remains. The UK government has made it a priority to support the emergence of alternative finance markets, and companies like Crowdcube, and we remain committed to working with key stakeholders to preserve the UK’s position as a global fintech hub.

� Scaling: Historically, we’ve experience challenges hiring software engineers due to being headquartered in Exeter. However, since hiring our new CTO, who spends his time equally between London and Exeter, we’ve made significant progress in this area.

We’re delighted our strong finish to 2016 has continued into 2017 with so many milestones being surpassed and records tumbling. However, it is our performance in terms of investment through the platform relative to our competitors and our ability to generate revenue that is most satisfying. This could not have been achieved without the hard work of our dedicated team and the investment from our crowdfunding round last summer.

ChallengesChallenges

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How you can help us:If you haven’t already, please follow us on Facebook

Search, comment and share articles from Explore (our blog)

If you have an iOS device, download the Crowdcube App today

You can take a look at the live pitches on Crowdcube here. You may have also seen Sugru is now public

and still open to investment.

Q1 2017 Milestones

If you have any questions, please emailinvestor@crowdcube.com

Thanks again for your continued support.

Luke & Darren | Co-founders of Crowdcube