On March 28, 2017, Sweeden’s biggest equity crowdfunding platform, FundedByMe, launched a new secondary trading platform. The new FundedByMe Trading platform will connect shareholders with interested buyers. Afterward, they will take the rest of the details of the trade offline.
“The response to this early launch has been great,” says Daniel Daboczy, CEO and co-founder of FundedByMe, “We are using this early format as a testing ground and have three goals: a) we do not want to harm any companies that may be opening up a round in the near future
b) we do not want to create a dumping ground or graveyard for unlisted shares – unfortunately this is what many of the other secondary markets out there have become – and
c) we want to allow FundedByMe members to buy or sell shares even after that company’s campaign on FundedByMe has closed, because we see this need, based on how life circumstances change.”
A secondary trading platform is good news for investors. This is because one of the biggest risks with crowdfunded investments has been their lack of liquidity. The platform is introducing this new service with ‘Trading Days’.
Interested members can sign up to participate since the first one has closed already. Once they register, FundedByMe charges the user 5% of the average value of shares before privately connecting buyers and sellers. Once these members connect, they complete the deal offline on their own terms.
Other equity crowdfunding platforms that have introduced secondary markets include Crowdcube, StartEngine, and Acquire Real Estate.
“We have had a lot of feedback from our 78,000 members regarding this first version of the trading platform and will continue fine-tuning the offering to offer a product that will be used and loved by both buyers and sellers,” Daboczy continues.
One of the only full-service crowdfunding platforms to offer equity, loan, and rewards-based crowdfunding, FundedByMe has helped more than 465 companies raise over €33.9 million.
The platform connects startups with over 78,100 investors from 182 countries around the world. FundedByMe is active in parts of Europe, including Sweden and Finland. The crowdfunding company is also in Singapore and Malaysia.
FundedByMe has won several awards for their service, including The White Bull Bully Award, WIRED’s Top 100 Startups, Owler – Hot in Stockholm, and Best Service Provider by the Nordic Startup Awards. This platform has been connecting startups since 2011, and they are always innovating to provide their users with more value.
Check out CrowdCrux Crowdfunding Podcast Episode #123 to learn more about the future of equity crowdfunding.