Investment platform Funderbeam is working with the European Bank for Reconstruction and Development (EBRD) to provide equity financing to start-ups and SMEs in south-east Europe (SEE).
Set up in Estonia in 2013, Funderbeam is the brainchild of former Nasdaq Tallinn Stock Exchange chief executive Kaidi Ruusalepp.
The platform enables growth companies to raise equity, convertible and loan finance in either public or private funding rounds. A syndication model allows for investments as low as €200, but fundraising firms have to find a lead investor to anchor the issue.
Where Funderbeam differs from other early-stage funding platforms is that it provides secondary market liquidity. Investors can offer their holdings for sale via the platform’s auction-style marketplace.
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Kaidi Ruusalepp, Funderbeam |
“This is our main value proposition,” says Ruusalepp. “You should be able to exit early-stage investments when you want, not when the company is doing an IPO in 14 years’ time.”
Funderbeam hosted its first four fundraisings in early 2016. Since then, it has helped more than 40 companies to raise finance. Initially, the standard issue size was €100,000-€150,000 but firms are now raising up to €2 million.
