From the Wires
FundedByMe Launches Equity Crowdfunding, Raising Over 3 Million SEK in 40 Days
By: PR Newswire
Dec. 5, 2012 03:01 AM
STOCKHOLM, December 5, 2012 /PRNewswire/ --
Earlier this fall, FundedByMe started testing its crowd equity platform in stealth. Only 40 days later, the company has shifted its main focus away from classic crowdfunding towards equity crowdfunding. By doing so FundedByMe wants to get involved in early-stage startups by providing the entrepreneurs with all the necessary tools to manage fundraising campaigns and large amount of shareholders with the ease of a click. Now they are challenging the ways of old financing and making it possible for any startup to raise money.
The frustration of having to close down due to financial shortcomings is the reason why FundedByMe started business and became Sweden's first crowdfunding platform. Daniel Daboczy and Arno Smit founded FundedByme in 2010 and are still the driving force behind a company that is completely committed to the crowdfunding revolution and which engaged more than 7500 individuals over the past 18 months.
In september the team launched its first equity campaign, in which investors get a part of the company and have the possibility to be actively involved in the future of the company. This way of funding challenges the old ways in which investments in companies were traditionally reserved for (venture) capitalists, banks and business angels.
A startup submits its idea into a so-called pre-round on FundedByMe's platform, this in order to test the valuation, pitch and market temperature. After having the possibility to adjust parts of the campaign, and when the hype is build, a company will change into an open-round. After 40 days of open rounds, three companies including FundedByMe itself, have raised far over 3 million Swedish crowns.
Virtuous Vodka, one of the other two companies running a successful campaign on the platform, raised over 75% of its goal (1 million SEK) in a month and is bound to close their round soon.
FundedByMe is excited with the attention the industry and the company both are receiving. There is no lack in interested startups, but FundedByMe continues to communicate clearly that running a successful (equity) crowdfunding campaign takes a lot of work.
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