SyndicateRoom has come up with a new way to give businesses embarking on crowd-funding campaigns an extra lift.
The Cambridge-based online funding platform is introducing new ‘lift’ funding rounds, which give private investors the chance to access business opportunities previously reserved for experienced business angels.
A lift round is different from overfunding, where a company meets its capital target and continues to receive investment. Instead, a business launches a crowdfunding campaign having already met its target, and raises additional funds from the crowd in order to accelerate its growth plans. As with all SyndicateRoom investments, investors receive the same share price and economic terms as the lead investors, who are usually high-profile investors or entrepreneurs.
SyndicateRoom CEO Gonçalo de Vasconcelos said: “Lift rounds have been an emerging trend during 2015, as equity crowdfunding comes of age.
“We at SyndicateRoom have always had a distinct vision: We’re democratising investment in growth businesses and crucially we’re giving our members access to a more sophisticated set of investment opportunities, enabling them to invest with the angels.
“We look forward to many more lift rounds, as SyndicateRoom enables the early-stage investment community to work in ever-closer partnership with the crowd.”
One business to benefit from a lift round is MCADO, better known as the disruptive home improvement brand Opun. It runs an online shop where people can search for and select professionals to carry out maintenance jobs.
Opun, through MCADO, quickly raised its funding target of £750,000 from an angel syndicate of industry heavyweights. Opun’s lift round through SyndicateRoom raised this number to £983,000, funds which will enable them to service their rapidly growing customer demand and to prepare for a favourable Series A valuation.
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