Cambridge, 5th May 2015
SyndicateRoom’s £1.2 million funding target secured in just over a day, despite limiting new investors to a £5k maximum
SyndicateRoom, the unique investor-led equity crowdfunding platform, successfully completed its £1.2m funding raise on its own platform in just over a day, despite limiting new investors to a maximum investment of £5,000 per person. The limit was placed to help increase the number of “owner advocates” that will own a slice of SyndicateRoom going forward, and led to a total of 201 individual people investing.
Investors were attracted by the startling success of SyndicateRoom since it opened just over 18 months ago -- doubling in size every quarter -- a feat achieved through the unique, ‘investor-led’ model that the platform has pioneered. The round was led by super-angel Jonathan Milner, whose pre-emption rights from his earlier funding of SyndicateRoom allowed him to invest £250,000 to maintain his share of ownership.
Goncalo de Vasconcelos, founder and CEO of SyndicateRoom said,“We are thrilled with this result, raising the money we sought in just over a day from so many new investors. With our wider ownership amongst discerning investors, we know the club of dedicated champions of our business model – and the fair and transparent approach we are championing – will help spread the word that there is a better way to do equity crowdfunding, where investor’s interests are balanced properly with those of the sophisticated businesses that are raising money on our platform”.
This investment round saw £1.2 million invested in just 33 hours, from a mixture of existing investorstaking up their pre-emption rights (but were capped at that amount) and new investors who were capped at £5,000 per person.
The caps are a reflection of the objective of using this round as much to build numbers of joint owners of SyndicateRoom as the money itself. A total of 201 people invested the £1.2m, securing a 14.12% share of the business based on a pre-cash valuation of £7.3 million.