Equity crowdfunding firm SyndicateRoom to open Series A round

Source: SyndicateRoom

SyndicateRoom, the equity crowdfunding platform which pioneered the investor-led model, today announces plans to open its Series A funding round for investors. The offer will open on SyndicateRoom’s platform on Tuesday 10 May at 09:00.

In May 2015, SyndicateRoom completed a £1.2million funding round in just 33 hours via its own platform, spreading the number of owner-advocates of the business. The new funding round, which launches tomorrow, is expected to raise £2.3million. Proceeds will be used to expand the business further, including boosting the equity capital markets part of the business. An aggressive growth strategy will see the company aim to double its employee numbers, currently at 22, over the next six months.

As part of consumer research launched today, surveying 3,100 people, entitled Bridging the Equity Divide, SyndicateRoom discovered that there is a swathe of people in the UK who seek wealth creation. In fact, more than half (53%) recognise their net wealth would increase if they invested in equities. However, they don’t feel these investments are accessible and are so far being put off doing so.

The report reveals:

- Equity investment needs to be simplified to attract individuals
Britain is a nation of savers and investors, with over half of respondents saying that if they were given £10,000, they would either save it or invest it. 22% of respondents saying they would spend the money and 17% who said they would use the money to pay off debt. While the average UK adult now has around £173,000 in personal assets, the majority of those who could be motivated to invest in equities have been put off because they cannot find a simple and easy way to do so.

- Britons seek greater control over their finances
Demand for financial advisers and managed wealth is low, with three-quarters of individuals surveyed believing that they are better off looking after their own personal finances.

- Everyday investors are attracted to public markets
More than half (53%) believe their net worth would increase if they invested in equities. Furthermore, 40% said that they would have invested in some IPOs had they known about them. In addition, SyndicateRoom has identified that 15% of the UK population has never invested in an IPO but have the ability and desire to do so, suggesting that the public equity markets are missing out on a vital source of retail investment demand.


- The technology sector is the industry of choice for retail investment
The results revealed a strong appetite to invest in technology, with this being the preferred sector for 46% of those looking to invest in companies. Crowdfunding has also been spotlighted as supporting growth businesses, 75% stating that crowdfunding has democratised the way people can invest in start-ups.

Goncalo de Vasconcelos, CEO and Co-Founder of SyndicateRoom said, “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.”

In March 2016, SyndicateRoom entered the equity capital markets by becoming a member of the London Stock Exchange, enabling crowdfunding investors to easily participate in IPOs and placings, on the same terms as institutional investors. With this new capability, SyndicateRoom can support companies from idea stage, right through to IPO.

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