Some investors for this latest Crowdfunder round included 500 Startups / 500 Mexico,
Crowdfunder raised a significant portion of the round from more experienced angels and funds like 500 Startups, and then "ate its own cooking" by crowdfunding itself -- taking its round out to its own network of accredited investors, which oversubscribed the round.
According to Crowdfunder CEO
Capital Market, Not a Niche
The online investing and crowdfunding space is a red hot market right now, with lots of attention, noise, and several other companies in the equity crowdfunding space, including AngelList and CircleUp. Crowdfunder's ability to raise investment from some top early stage investors in this competitive space shows it's growing traction, as well as the dynamics of this area not being a "winner take all" category (as noted in Crowdfunder CEO article on Forbes: Investment Being Democratized, Moving Online). The CEO shares how the market space is more akin to a capital market than a traditional internet niche.
Investment Market Heating Up
This funding round comes at a time when Title II of the JOBS Act was recently enacted, allowing startups to more publicly fundraise online. In this same period of roughly the last 145 days, Crowdfunder opened up the ability for startups and social enterprises (for-profit) to raise investment on its platform. In that short period the company helped close 13 investment rounds, at an average round size of
Some of these funding rounds on Crowdfunder already had first money and lead investors. Several had not only angel investors, but notable VCs investing. Crowdfunder CEO
Barnett also stated that "the value of having your company already vetted by experienced investors, and showing that powerful social proof and validation via Crowdfunder to follow-on investors is driving real funding results and outcomes. Some people thought online investing would be dumb money, but we're finding that entrepreneurs are often able to connect with strategic investors through our network."
The commenting period for Title III of the JOBS Act ends on
Crowdfunder also recently received a grant from the Mexican government for
Top local investor partners in the
After proving that Crowdfunder is adding capital to entrepreneurial ecosystems outside of the US, the company is working with organizations like the
Crowdfunder is the leading investment crowdfunding platform for connecting investors with entrepreneurs to fund
Crowdfunder's fast-growing network of investors and entrepreneurs is fueled by CROWDFUNDx, a proprietary framework that turns investment crowdfunding into a local affair, by empowering local or niche communities to conduct entrepreneurial contests and educational events. This supports the vetting and identification of companies for investment crowdfunding.
Chris Barrett917.379.1430 firstname.lastname@example.org