Across the globe, more and more private companies are looking to equity crowdfunding platforms to tap into the crowd in order to raise funds and grow their businesses. A proven concept in Europe for more than five years now, many companies have used equity crowdfunding to jumpstart their businesses, since accessing capital from traditional investors is often a major roadblock for startups. While equity crowdfunding regulations vary from country to country and jurisdiction to jurisdiction, much of North America and Europe are using some or multiple forms of equity crowdfunding.
We’ve compiled a list of five companies who have used equity crowdfunding to get their start, including two of FrontFundr’s recent companies to raise capital through our platform—Guusto and RentMoola. Despite being a fairly new method to raise funds, seeing these successful equity crowdfunding raises in multiple markets over the past several years is proof of great market potential.
- In September 2015, Guusto closed Canada’s first ever deal to leverage the new startup crowdfunding exemption. The mobile gifting app raised a total of $50,000 from 18 investors in 90 days using FrontFundr to raise funds. Investors were able to invest as little as $500 in Guusto in exchange for equity.
- Based in Scotland, BrewDog launched its Equity for Punks campaign in 2010, enabling over 14,500 regular investors to become shareholders in the business. In October 2015, BrewDog launched another equity crowdfunding campaign through CrowdCube, where the brewery raised more than $5 million.
- Netherlands-based Only Once is a data-storing platform that is currently raising funds through Symbid. Thus far, the company has secured 600,000 Euros in funding from a total of 180 investors, making it Symbid’s largest crowdfund.
- In the spring of 2014, Bitvore closed their Series A of $4.5 million, with nearly $1 million coming from crowdfunding via Crowdfunder. The US-based intelligence gathering software used momentum from their crowdfunding campaign to close additional offline investors.
- The most recent company in Canada using investment crowdfunding to raise capital is, RentMoola. The company worked with FrontFundr for online investments, which contributed approximately $100K to their total of $2.4 million dollars. The global payment network allows renters to pay their rent through their secure and efficient system, and gave investors equity starting at a minimum investment of $5,000.
For information on the latest deals on FrontFundr, visit Pitch Place, or visit Prospect Lounge for companies who plan to raise funds in the near future. If you’re a business owner looking to raise funds, get started by visiting our Entrepreneur Suite.