By Ryan Weeks on 12th February 2014
The next-generation, 6 month old crowdfunding platform – SyndicateRoom – has now helped to secure over £1 million in investments for promising British businesses.
SyndicateRoom believe themselves to be ahead of the curve in the equity crowdfunding sphere. The platform’s unique structure allows ordinary people to invest in startups alongside angel investors and venture capitalists. The sophisticated base of investors that the platform naturally attracts has pushed the average investment size made via the site up to £5k. This is significantly higher than any other crowdfunding platform.
“SyndicateRoom’s extraordinary rate of growth since launch shows the strong demand among more sophisticated investors for equity crowdfunding, and the big potential returns offered by promising young businesses.
“Clearly, this type of investment will always be classified as high risk, but knowing that the company you are buying into has undergone extensive due diligence by professional investors has proved a great draw for our smaller investors – who together have contributed more than half of the funds invested.”
As Vasconcelos explains, angels and VCs are not only providing capital, they also offer significant expertise. Every company available to the crowd for investment on SyndicateRoom has already received the majority of their fundraising target from a lead angel investor or network of angels. These professional investors enact extensive due diligence before offering up their own money. Industry heavyweights such as David Ryan, Peter Cowley and Hermann Hauser are amongst SyndicateRoom’s current list of angels. It will certainly lend confidence to ordinary investors to know that they are investing alongside such experienced professionals.
“Our blended model – in which professional and smaller investors team up to share the risk and the rewards – has broadened the appeal of crowdfunding from penny stock dabblers to more sophisticated amateur investors who are keen to include equity in start up businesses as part of a balanced portfolio.
“We pride ourselves on being a flag-carrier for Crowdfunding 2.0 – connecting more investors with more great British businesses.”
In another alluring twist for investors, the nature of companies that list on the platform make it possible for SyndicateRoom investors to benefit from the Seed Enterprise Investment Scheme (SEIS) – which returns 50% of the amount invested with no tax payable upon profits.
AltFi is returning to Amsterdam for its second annual Summit in the city. The inaugural event last year was a roaring success, with key figures from across Continental Europe's alternative finance and digital banking sectors highlighted. These included Jeroen Broekema, managing director of Funding Circle Netherlands, and Mieke van Engelen, head of innovative partnerships at ABN AMRO's standalone lending platform, New10.