Equity crowdfunder SyndicateRoom is launching a £2.3m Series A funding round.
The new SyndicateRoom offering will launch on the platform at 09:00 tomorrow morning. Proceeds from the Series A will be used to further grow the business, with a particular focus on developing the platform’s equity capital market initiatives. SyndicateRoom announced in March that it would be providing its investors with access to IPO offerings, in effect acquiring intermediary status with the London Stock Exchange.
If successfully raised, the £2.3m will also go towards supporting an aggressive growth strategy that will involve doubling headcount over the next 6 months. The company currently employs 22 people.
SyndicateRoom last raised money in May 2015 in a £1.2m round that was again hosted on its own platform. That fundraise closed in just 33 hours. The platform then offered up 14.12% of its equity at a pre-money valuation of £7,301,471. The maximum amount that any one investor could commit was capped at £5k, with the intention of creating as many “owner advocates” as possible.
SyndicateRoom has accompanied its fundraising announcement by publishing a report entitled “Bridging the Equity Divide”. Of the 3,100 people surveyed, 53% believe that their net worth would increase if they invested in equities, but that such investments are largely inaccessible. 40% of respondents said that they would have invested in IPOs if they had been aware of them, while 15% have never invested in a listing but are both keen and able to. This all relates back to SyndicateRoom’s intention to evolve into an investment platform for both listed and unlisted equities. The report is being launched this evening at a SyndicateRoom event that has a grand total of 951 attendees registered. This ought to allow tomorrow’s fundraising round to hit the ground running.
“We now have evidence that there is strong appetite for equity investment in the UK - for private companies and in for those in the public markets - and today’s report serves as evidence. We therefore expect significant growth ahead, and most important for me is addressing the high number of people in the UK who would like to become equity investors but do not know where to start. That is why we are raising funds for SyndicateRoom today, to address this large market of potential investors and support the next stage of start-ups and high growth businesses in the UK.”
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