Own a piece of a growing company
SEK 3 million reached in less then 32 hours. After very popular demand we are offering more stock to our great crowd.
Update 15 May 11:11
The round is officially closing by tomorrow. If you have not yet signed or transfered the funds, please do it today.
Update 21 April 16:02
ROADSHOW We invite you for wine, mingle and a talk in Gothenburg, Malmö, Helsingborg and Stockholm to tell you more. Please note that only a limited amount of seats are available. Sign up early if interested!
Update 4 April 14:32
The round is oversubscribed and we love that! We have not yet closed but are collecting electronic signatures and transfers from the ones we have sent the offering to. The link to the oversubscription list is here:
Have you seen what Forbes writes about us? How Kickstarter's Loss Became Sweden's Gain
Update 23 march 22:30
After an super intense 6 days we reached SEK 6 million. We are NOT closing the round but offering you the chance to sign your interest to invest by oversubscribing. Oversubscription is a situation in which investors show so much interest in a new issue of a stock that demand exceeds supply. Please fill in the following information to secure your chance to invest. The link goes to a Google Form: Oversubscription list to invest in FundedByMe
/ Daniel Daboczy, CEO FundedByMe
Update 22 march 18:01
Never in a million years we could have anticipated that the interest would be this big. Thank you for seeing our hard work and believing in us for the future that lies ahead. We have reached almost SEK 5,5 million and we have still not counted in the investors from Singapore who want to join. And there are still a lot of e-mails and booked meetings ahead to go through. We want to thank you once again, and promise you that we'll do our very best to make you proud!
Update 20 march 20:20
We are so grateful. We reached SEK 4,5 million even faster than anticipated and after speaking in front of 4000 people at Avanza Forum in Globen we received even more interests to invest. We have increased the goal once again by offering more stock at the same valuation. Thank you all, you make us very happy! This is just the beginning, we promise!
Update 19 march 23:26
Wow. We are super overwhelmed. You have shown us so much love and the interest to invest is huge. We reached SEK 3 million in record time. It took less than 32 hours. Since the demand is so big we have decided to raise our goal.
After that we'll set up waiting lists and prepare for the possibility to over subscribe.
Thank you! This is just the beginning!
2013 has been our best year so far. We've grown and expanded into 8 countries. We've staffed up, rebuilt the site, focused & tweaked. And now you can also invest and become part of our growth.
We invite you to become an investor in our growing, global crowd investment platform. We invite you to buy a share in an interesting company that has helped many businesses and ideas raise money and grow. We invite you to invest because we have built an amazing team, an amazing product and we are looking towards a very interesting future.
What is FundedByMe?
FundedByMe is an online, cross-border investment platform for discovering and investing in great companies and ideas. We let people invest as little or as much as they like in companies they choose, and we let entrepreneurs raise capital from friends, family, their communities, business angels and the crowds, all through a simple online process.
FundedByMe is now growing and developing new methods, with crowd-lending being our latest addition, for both investors and entrepreneurs. We will do this throughout Europe and Asia, making us the first real cross-border crowd investment platform in the world.
- 2011 was about launching crowdfunding in Sweden.
- 2012 was about developing and changing our business model by adding equity crowdfunding.
- 2013 was about growth, staffing, re-working the product and entering key European and Asian markets.
From 2014 and onwards, we take the best of what we've done so far, with the best team ever and focus on converting and becoming profitable. To become profitable we will increase the pitches submitted, increase the active member base from 32,000 to 50,000 then 100,000 and beyond, focus on closing deals faster while developing better and faster ways to make money and break-even.
Why we raise money?
We are raising money for further developments; to launch crowd-lending in all markets, to further penetrate the markets we are in and to continue expanding into other key markets. We believe it is super important to stress the fact that FundedByMe wants to provide all Europeans and Singaporeans with the chance to raise money through equity crowdfunding and crowd lending.
As equity crowdfunding is getting more and more regulated in all EU member countries, FundedByMe wants to be proactive in the compliance to such regulations, being able to ensure all the needed guarantees are in place to safeguard both crowd-investors and crowd-entrepreneurs. This way FundedByMe will lead the way in Europe and be the fastest growing platform and become profitable. Concurrently, to grow stronger in its Asian markets, expanding beyond Singapore.
Vetted by Business Angels
During the last 6 months we have been fortunate to count a lot of important business angels among our new investors. These are:
- Fredrik Stenbeck
- Carl Magnusson
- Peder Engberg
- Ove Långström
- Jonas Dromberg
- Per Schött
- Pontus Åselius
- Bengt Åkesson
- Peter Daboczi
- Jack Melcher-Claesson
- Christer Magnusson
- Tom Beyer
- Karl-Adam Bonnier stiftelsen with Tor Bonnier
- Fredrik Kant
- Frontier Nordic
- Aggregate Media and a few more
After popular demand, since many of you have asked to become part of FundedByMe, we invite you to also invest in FundedByMe and join us towards a very interesting future.
In order to see the full offering or any other details please see the attached documentation or contact us.
We received the first major investments in the fall/winter of 2012 after launching equity crowdfunding in The Nordics. We raised almost €1,2 million in total from September 2012 until now. This has helped us grow from 3 people to 18 people in 8 countries. With this, we have a strong position in key markets, and our product has undergone continuous improvements to cater to the market demands.
What's next for FundedByMe?
DRIVING REVENUE - 2014 will be the year where we focus on increasing our revenue, in addition to testing all our ideas on how we can grow, ensuring that the company can sustain and increase the momentum we have built, the traffic we have and the companies we attract can be harvested and turned into profit.
CONVERSION - Our focus goes to tweaking, testing, iterating and developing our site and process, so that we can close cases faster, present investments to investors in a better way and making sure that every visitor, member or user gets the best experience. Our latest efforts increased conversion by 118% but we want to increase conversion even more.
NEW PRODUCTS - We know that our customers need more tools and better options in their campaign process (before, during and after the investment stages). Therefore we'll be superfocused on developing even more and even better tools. One example will be the addition of Crowd-lending as an extra financing option. Crowd-lending is launched first in Germany and after that the other markets. 1) In the long term, we will enter the SMB (Small and medium businesses) market as it is a perfect tool to streamline and finance innovation for corporate technology companies. Testing and marketing the product market acceptance before investing in it and finding financial support plus a committed fanbase at the same time. This is unique and new. 2) In specific markets, SMB institutions and even banks have shown interest in co-financing & running campaings on FundedByMe on a bigger scale.
GROWTH - Being in 8 countries including an Asian one is great but we believe that we have found a model to grow into new markets quite fast. We have learned how to understand local law and local culture and how to gain the customers trust. We see that we can (and will) expand to even more markets in the future. The growth plan for FundedByMe is bold and in line with our belief that volume is an important part of our business model. Within the next 18 months the company will be represented in at least 11 markets.
Since our start we've been working hard at bootstrapping, keeping costs low and making sure that we make the right decisions. Our focus is always on the people and technology. We know that with the right team we can maximise our potential.
We are fortunate to have an amazing team, we hired highly networked and the best educated people. This does not only include our staff, but people in our board, advisors and investors. Our team holds previous experience from Facebook, Microsoft, Klarna and Spotify. In addition our team is experienced in private banking, IPO's (Initial Public Offerings), Venture Capital and related fields.
For entrepreneurs. Banks, business angels and VC's don't invest enough or at all. Many companies struggle with that important first funding or growth funding. Many amazing entrepreneurs are turned down because they are too early, too small, too niched, too complex, too "late" or just too risky. And that made so many great ideas vaporize instead of growing big and changing the world.
For investors. Individuals and corporations aren't happy with their stock market returns - the deal flow offered or their financial portfolios. Many times they feel as if they were the last ones on the ball, while they only read about amazing deals when it's too late and they would've wanted a small piece of That Next Big Thing. They can only invest locally while understanding that amazing companies can be found globally.
This has created a perfect storm where the ones that would want to invest can't and those who need investments only approach those who are not ready to invest, not able to invest or unwilling to invest. We created this company to offer an opportunity for everyone to bring and idea to the market through crowdfunding. And now we are taking further steps ahead.
The solution is crowdfunding. Crowdfunding through reward-based crowdfunding, equity-based crowdfunding or crowdlending. FundedByMe takes a huge amount of deals, filters them into a great presentation, with the right components, checks if the entrepreneur is trustworthy and offers them to our global audience. The members then test, review and give feedback. If the pitch is not presented well, if valuation is wrong or anything unclear or not trustworthy the crowd reacts. If the pitch is good, the idea well presented, the team executing the business plan is great and the documents are good, the crowd will then support, invest or loan the money needed. BUT - the crowd contributes so much more than money. They become customers, ambassadors, early adopters and amazing megaphones. This is exactly what early or growth companies need - Money and the force of crowdfunding creates this amazing momentum.
Simply put. Companies need investors, but can't find them. The investments made are few and only in superbig companies while the vast amount of SME's (Small and Medium Enterprises) struggle to get funded. And people want to invest in companies in early or growth stages but can't. We are here to solve these problems and introduce these two groups on a global level.
What are the 3 types of crowdfunding offered?
- Equity: Funding a company by selling shares to crowd investors in exchange for partial ownership.
- Reward -based: Funding a campaign by securing the financial support of many backers in exchange for a reward.
- Crowd lending: Funding a company through a loan from a crowd of lenders in exchange for a fixed interest and share of profit.
The Market Size
In 2010 the phenomenon of crowdfunding was brand new and now it's a market that has grown exponentially and is worth over $5,2 Billion globally. Recently Kickstarter announced that they raised $1 Billion in crowdfunding. The US is introducing a new legislation to allow offerings to the general public, France has introduced new crowdfunding laws, Sweden has introduced an historical deduction for investments and the Singaporean MAS is looking at new legislation. The markets are changing rapidly and most countries are adapting their legislation towards handling equity crowdfunding. Nesta (National Endowment for Science Technology and the Arts) Report titled ‘The Rise of Future Finance’, estimates that crowdfunding will see a 600% growth in the coming year. link here
Also: 28% of U.S. company CEOs and 17% of VCs will consider using crowdfunding and general solicitation in 2014. Read about it here: VCs Predict Stronger Exit Market, More Investment and Improved Economy in 2014
FundedByMe Market share The rise of FundedByMe since its launch in 2011 has been epic. In the past three months the company received a White Bull Bully Award, was listed as one of Wired UK’s top 100 startups and was named one of the top 100 websites by InternetWorld.
In March 2012 we only had raised €100,000 for companies needing funding. By March 2013 that figure had risen to just over €2 million. In march of 2014 that number has exceed a total of €4.5 million, and our investor member base surpassed 32,000 registered members. This figures are steadily in line with the above stated growth numbers seen by the industry. We are super proud of these figures, although we still consider that this is just the beginning and a massive future growth lies ahead of us.
One of the top crowd investment platforms
Kickstarter rules the global reward-based crowdfunding scene, closely followed by IndieGoGo. On this market we are one of many although the biggest one in Northern Europe and one of the top platforms in Europe. But, since our pivot in September 2012 we've become on of the leading platforms in equity crowdfunding. On this market we are the only one operating in as many markets as we are, we are top 3 on registered investor-members and one of the first ones proving that cross border investments are a fact. In fact, 95% of our equity crowdfunding pitches have had investors from other countries than theirs, and we see investors from Spain invest in companies in Sweden, UK investors invest in companies in Finland and Singaporean investors invest in companies in Denmark. One of our latests successful pitches, Goodio Cools saw 40% cross border investments.
We actually added 2% new money to the Swedish Venture market and over 56% to the Swedish seed-funding market so far. And remember, these are not market shares that we've taken, but new money we've added to the system. That have created jobs, opportunities and a lot of new deals. And 16% of the investors have invested in more than one company.
Overall trends on FundedByMe
Sweden is still number 1 in raised money, members and traffic. We have more than 53% that are non swedish at this point. Closely followed by Finland, Spain and our other markets. Our main traffic countries are: Sweden, Finland, US, Denmark, Spain, Norway, UK, Germany, Italy and Singapore.
We are happy to see that overall trends are increasing, in some cases dramatically. We see user acquisition, traffic to site, conversion to investment, new registrations etc show very positively as upward-moving curves. Most interestingly, 95% of our equity rounds have had cross-border investments. In certain cases, up to 40% of the investors were from outside of where the company is based. Spanish investors have invested in a new restaurant in Stockholm, UK investors have invested in companies in Sweden, Singaporean investors invested in danish companies and Finnish investors invested in Spanish companies, and many many more.
This is amazing since cross-border investments are a key factor, proving that we are fast heading towards becoming Europe's leading crowd-investment platform and in the future one of the leading global ones.
Points of Differentiation - POD
What makes FundedByMe different from the competition.
All our competitors work hard and have closed deals. All make a local impact in their markets. All are impressive and we look forward to the future consolidation. But we are slightly different and a lot better, because:
- First of all, we've been around since 2010. We know the industry inside out.
- We have some of the best people as part of our team. In development, management and as investors.
- We are truly global and have offices in 8 countries. 7 in Europe and 1 in Asia
- We are one of the few ones actually showing that cross-border investments happen on a daily basis.
- We are a crowd-investment platform. Currently offering Equity and Reward-based crowdfunding and soon also crowd-lending. Our offering becomes more flexible both for entrepreneurs and investors.
- We are currently pursuing agreements to work strongly with vetted deals on all markets
- We already count 32,000 investor members. A figure that rises fast. We expect to hit 50,000 very soon.
It all started with two underdogs. A Romanian art-major and an african coder, strange fellows on paper but proven entrepreneurs in real life. They took crowdfunding to Sweden. And with the help of the first believers, the first investors, the first customers we have grown and created a global company. Now we count 18 employees in 8 countries, many active investors, a board to be proud of, an advisory board that is strong and effective. We are attracting the best people (and we are keeping them), we are super-focused and determined to succeed, while we are changing the world of finance for investors and entrepreneurs.
- We have experience in hundreds of reward-based and equity based campaigns with international crowd.
- We are willing, brave and experienced enough to become a global market-leader.
- We know the market, we have the crowds and the success stories show amazing traction.
What does the Press say?
We have been very fortunate to receive quite a lot of attention from the press. But we are even more happy when we read about our amazing entrepreneurs and creators who make it big after going through the FundedByMe process. Not only they raise money but they also gain ambassadors, early adopters, fans and people that can help them get their idea, product or concept out faster than ever before.
Investeraravdraget - Applicable to Swede's only.
(In swedish only, regarding a swedish tax deduction on this investment).
Ett nytt så kallat investeraravdrag infördes den 1 december 2013. Det tillämpas på investeringar gjorda efter den 30 november 2013.
Investeraravdraget innebär att fysiska personer som förvärvar andelar i ett företag av mindre storlek i samband med företagets bildande eller vid en nyemission kan få göra avdrag för hälften av betalningen för andelar i inkomstslaget kapital. Avdrag ges med högst 650 000 kronor per person och år, vilket motsvarar förvärv av andelar för 1 300 000 kronor. Investerarnas sammanlagda betalning för andelar i ett och samma företag får uppgå till högst 20 000 000 kronor per år.
Exempel: Företaget Mindre AB erbjuder befintliga aktieägare att teckna nya aktier i företaget för 100 kronor styck. Företaget uppger att alla villkor för investeraravdraget är uppfyllda. Karl tecknar sig för 500 nya aktier, och han betalar 50 000 kronor för dessa.
Investeraravdragets storlek blir 25 000 kronor (hälften av 50 000 kronor), vilket ger en skattereduktion på 7 500 kr (25 000 kr x 30 %).
Denna investering uppfyller alla villkor för att din investering skall vara avdragsgill enligt ovan
FundedByMe is proud to have been invited to numerous events to speak, to inspire and to teach about crowdfunding. We have a number of very prominent partnerships and collaborations. One of our proudest collaborations is with the global network of Women Investing In Women. See below a short video from one of our co-hosted events.
Read what the Press says:
Risks and challenges:
Investing in start-up and early stage businesses is high risk. The majority of start-ups fail or do not deliver shareholders a return on their investment. It is important to be very clear about the risks and not only talk about the up side. Investing in start-ups and early stage businesses involves risks (lack of dividends, dilution, loss of investment etc.) The investors are responsible for understanding these risks and also to make their own well-considered investment decisions. The investors should have an investment strategy of diversification, which involves spreading risks and money on multiple investments.