Cambridge, UK. September 15th, 2015
SyndicateRoom continues to dismantle the barriers between professional investors and online equity crowdfunders, enabling the crowd to access investment opportunities that were previously the preserve of sophisticated business angels. The latest innovation from SyndicateRoom is the ‘Lift Round’, a funding round that has raised its minimum funding target from an angel syndicate or other professional investors, before the opportunity goes live on SyndicateRoom and where we have negotiated an exclusive chance for our members to invest in an extension of the round.
A Lift Round is fundamentally distinct 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.
With the business having already met its original capital target, crowd investors have the confidence that the round will always successfully close, professional investors and business angels associated with the original round have a reduced level of risk and the raising business enjoys increased capital in order to deliver against its plan.
The latest Lift Round on the SyndicateRoom platform was MCADO, better known as the disruptive home improvement brand Opun, is one of the first to launch a Lift Round on the SyndicateRoom platform. Opun offers homeowners a one stop online shop for all home improvements, with handpicked professionals, a guarantee on all the work carried out and a helping hand every step of the way.
Opun, through MCADO, quickly raised its funding target of £750,000 from an angel syndicate of industry heavyweights, including investment veteran Will Chawner. 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.
SyndicateRoom CEO Gonçalo de Vasconcelos added that: “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”.