Want to help crowdfund a crowdfunding platform? You still might have a chance, Stockholm-based FundedByMe quickly hit their SEK 6 million goal (€677,000) and are meeting additional demand in their round by allowing an oversubscription of shares. Before the round started, an estimated SEK 2.5-2.8 million was expected to be committed. 333 individuals invested in the platform.
Switching back to Euros, with this €677,000 round FundedByMe is offering 12.36% of their shares, meaning the company has valued itself at €5.4 million.
Speaking to CTO Arno Smit there were two reasons for starting this round. First was that they wanted to do so for brand awareness - raising money through your own platform leads to articles like this one. And additionally they wanted to show that cross-border investments are a possibility to companies looking to sell equity. Currently FundedByMe in present in Finland, Denmark, Norway, Spain, Italy, Singapore, and Germany.
"We are quite proud that in the last year, since our pivot into equity crowdfunding, we've already added 2% to the total venture-funding in our main markets and over 56% new money to seed-funding Figures that clearly shows that equity crowdfunding is a model that not only increases investments but also caters for cross-border investments and attracts an global audience," says Daniel Daboczy, co-founder and CEO, in a statement.
Fundedbyme is also exploring the 'crowd lending' market, similar to what isePankur is doing in Estonia. As there are more individuals and small businesses that need loans compared to startups selling equity, it's likely the market for crowd lending is much bigger. Additionally equity is difficult to sell to the average consumer because it takes four to five years before you see an exit.