SyndicateRoom, a leading UK based investment crowdfunding platform, has been preparing for a self crowdfunding round in the amount of £1.2 million. Apparently there is a lot of interest in backing the funding portal as company representatives have shared the crowdfunding round is 2X over-subscribed even before launch.
The offer that becomes available on May 1, 2015, is described as increasing the number of “owner advocates”. Individual investors are being limited to a £5,000 max investment. The intense interest is reportedly sufficient that SyndicateRoom does not require additional funding at this stage.
“The enormous demand from our existing shareholders to invest more in SyndicateRoom is an obvious validation of our unique approach to equity crowdfunding and tells us we are very much on the right track, even if it is a very different one from the other two big players in the sector,” said Gonçalo de Vasconselos, SyndicateRoom CEO. “With every investment round on SyndicateRoom being led by one or more experienced angel investors or VCs – negotiating the valuation, agreeing all the terms and investing significantly themselves, and then sharing these exact arrangements with all investors who join the round – our model offers greater fairness and transparency for investors than any other.
“As business is going so well, we only need to raise £1.2m at this stage, but we have tried to do this in a way that will allow many new investors to join us. We know that the way we operate makes our shareholders enthusiastic advocates for SyndicateRoom, which expands our reach to the right people without having to spend a fortune on advertising.
“Because we are not overfunding, we know that a number of people will miss out on this round, but we hope to be able to welcome them in future raises down the line.”
SyndicateRoom has constructed a crowdfunding model that pairs professional investors with retail types. The investment terms are such that Angels / VCs receive the same deal but retail investors may benefit from the due diligence of a more sophisticated lead.
The self-crowdfunding round for SyndicateRoom is being led by “super-angel” Jonathan Milner who has validated the pre-money valuation of £7.2 million and invested “over £250,000 of his money”. SyndicateRoom states that over a week prior existing investors rushed to participate pushing the demand to over twice the initial amount.
SyndicateRoom has been in operation for approximately 18 months. The company states it has doubled in size every quarter. The pairing of pros with the crowd, with highly curated early stage investment offers, has worked well for the platform, helping the crowdfunding portal move up into 3rd place in the UK. Founded by Gonçalo de Vasconcelos and Tom Britton, the platform was highlighted for its fast growth in 2014. SyndicateRoom announced the milestone of £10 million raised for 18 different companies in the Fall of 2014. To date SyndicateRoom has raised over £20 million for more than 20 companies capturing an average amount per investment of £15,000. While still in the early days, no funded company has yet failed.
Jonathan Milner commented on the company;
“I have been a board observer in the business for over a year. SyndicateRoom’s vision, values and team make it an incredibly exciting business and I look forward to investing alongside others in this funding round.”
“SyndicateRoom has demonstrated that when done properly, where the interests of investors are genuinely balanced with those of quality, serious businesses seeking investment, equity crowdfunding can be a huge force for good for both investors and industry. As an experienced angel investor, I know how crucial fairness and transparency are to successful investment, where both sides win, and SyndicateRoom unquestionably leads the way in this regard.”
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