Founded in Tallinn, Estonia, and now with offices in the financial centres London and Singapore, Funderbeam allows anyone to invest in private companies on its equity funding and trading platform.
Founded in 2013, Funderbeam has now raised €4 million in Series A funding, led by UK-based Accelerated Digital Ventures (ADV). The round includes new investors such as GK-Plug and Play Indonesia, Pandan Ventures, with existing investors including Draper Associates, Draper Venture Partners, IQ Capital, and Mistletoe also taking part.
Funderbeam’s mission is to fill in the gap in venture and SME capital markets by providing startups with access to early-stage investments and liquidity on its blockchain-secured platform. The platform so far has 37 high-growth portfolio companies on its marketplace, with more than 10,000 verified investors across 119 countries, and €2 million in investment shares have exchanged hands on its secondary marketplace.
“When I was leading NASDAQ Tallinn, I hated the fact that because of the large central European intermediaries, Estonian investors and companies had very limited access to global capital markets,” said Kaidi Ruusalepp, founder and CEO of Funderbeam. “We were just too small for big players. And when I set up Funderbeam in 2013, it was hard to get access to growth capital and we had to move our HQ closer to money. Those two sides of one story is the heart and soul of Funderbeam – to serve private investments and growth companies no matter where they come from.”
“Liquidity is fundamental to venture capital,” added Lee Strafford, CEO of ADV. “Without a viable liquid market, early-stage investment is constrained and company growth is negatively impacted. Funderbeam is building a platform which enables liquidity, maintaining the momentum of companies and allowing investors to go again. We share the vision of the Funderbeam team and are excited to partner with them on a journey which could change venture forever.”
The funding will help the company develop a strong secondary market offering as well as further expansion into key markets such as Asia, starting with Singapore, and in continental Europe.
Funderbeam recently launched in Scandinavia and the UK, helping founders to raise private funding from a global network of investors. Founders are then able to choose who can invest and therefore retain control of their cap table. For investors, Funderbeam provides access to a community of curated, ambitious growth companies and the option to trade their investments at any time, facilitated by blockchain technology. This provides investors with unique liquidity not available on any other platform. A robust due diligence process and lead investor acting as an ambassador for every round ensures the high quality of companies on the platform.
Funderbeam hosts a unique range of startups and SMEs available for cross-border investment and trading. Last year, Funderbeam expanded to the UK, established a base in Singapore, and increased its presence in the Nordics. The startup now has five offices around the world, and is actively hiring to add people to its team.