Investment Crowdfunding Platforms: Who’s Funded?

Congratulations to the WeFunder team for successfully raising their seed round, on their own platform no less.  From the email blast sent out last night:

So, we ate our own dog food. Using current state “blue sky” laws (which prohibited advertising), we raised $533,800 from 58 investors in amounts ranging from $100 to $100,000. Half of these investors were un-accredited.

For equity platforms, there are a number of benefits to raising capital via its own portal. A great story, great marketing opportunity, and an element of authenticity and concept-validation. WeFunder wasn’t the first to do it. In December 2011, CrowdCube, a UK-based platform, raised $511,000 from 162 investor in 12 days. Offering up 9% of the company, the round landed them a valuation of $5.6 million. FundersClub followed suit, raising part of its $529,000 pre-seed round on its own platform as well.

Here’s a list of others in the pure-play crowdfunding space that have raised capital. This is based only on public information, so by no means all-encompassing. Nor is it fully indicative of competitive position as (i) some players may be self-funding, (ii) others may choose not to disclose fundraising activity and (iii) it doesn’t speak to the vast number of periphery players who may choose to meaningfully move into the crowdfunding market. Additionally, I’ve heard of a few crowdfunding platforms that are priming follow-on rounds right now. I suspect we’ll see a few press releases in the coming months. I’m sure I missed a few, let me know in the comments!

  • CircleUp
    • Seed Round: $1,500,000 (Source)
    • Equity platform; San Francisco, CA
  • CommunityLeader
    • Series A: $850,000 (Source)
    • Equity platform + ancillary products (white labeling being one); Minneapolis, MN
  • CrowdCube
    • Seed Round: ~$500,000 (Source)
    • Equity platform; UK
  • Crowdfunder
    • Seed Round: $400,000 (Source)
    • Equity platform; Los Angeles, CA
  • EarlyShares
    • Series A: $1,150,000 (Source)
    • Equity platform; Miami, FL
  • FundersClub
    • Pre-Seed: $529,000 (Source)
    • Seed Round: $6,000,000 (Source)
    • Equity platform; San Francisco, CA
  • Invested.In
    • Seed Round: $880,000 (Source)
    • White labeling platform; Los Angeles, CA
  • SellanApp
    • Seed Round: ~$193,000 (Source)
    • Revenue-share; Netherlands
    • Raised seed round on Symbid, crowdfunding platform based out of the Netherlands
  • SoMoLend
    • Series A Round: $1.7M (Source)
    • Debt platform; Cincinnati, OH
  • WeFunder
    • Seed Round: $550,000 (Source)
    • Equity platform; Cambridge, MA

 

About Jonathan Sandlund

Founder, TheCrowdCafe

  • Mark Mohler

    I like the fundraising over the site approach as well. I heard Vince Molinari speaking this week about the short to mid-term challenges for investment portals because of the lack of foreseeable revenues. Given the timing issues for the start of equity crowdfunding and the inherent questions regarding economic feasibility for the US industry, it will be interesting to see how risky it is to scale up too soon.

    • http://jsandlund.wpengine.com/ Jonathan Sandlund

      Mark,
      Thanks for the comment. Vince is spot on. It’s going to be tough for undercapitalized portals to wait out the 12+ months before Title III.

      Even under Title II, ‘accredited crowdfunding’, I think the market is going to develop far slower than most people expect. If this is the case, platforms are going to need to be very well capitalized to fund the deficits they’ll be running to build their brand and acquire customers. On the startup side of the market, this bodes quite well for players who already have these customers.

  • http://blog.zerosum.org zapnap

    Thanks for compiling all this information in one place. Very useful from a trend analysis point of view. One correction: Wefunder is based in Cambridge, MA not NYC.

    • http://jsandlund.wpengine.com/ Jonathan Sandlund

      Many thanks for the correction! Just updated.

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