Crowdfunding platform Syndicate Room executives have taken a leaf from their own book and sought £1.2 million to grow their business.
The target was easily oversubscribed, giving away just over 14% of the shares in the company, which was valued at £7.3 million.
The valuation gave a share price of £2.88.
The company revealed 200 investors had bought an equity stake in the business.
Syndicate Room has helped with raising £22 million for 36 UK businesses since coming to the market in the summer of 2013.
- Mill Residential REIT, a property fund that has generated a 14% return for investors and remains the only crowdfunded IPO
- Contributing towards the coffers of Hollywood ‘s first equity crowdfunded movie, Salty by writer Simon West
- Setting up the UK’s first ISA crowdfunding investment with Sandal plc
“Crowdfunding is taking off, but the industry needs to do more to strip away some of the complications that can put off investors and become more transparent if platforms want to continue growing,” said chief executive Gonçalo de Vasconselos.
Spanish investment rule change
Spanish financial regulators have revamped crowdfunding guidelines that were slammed by investors and platforms as too tough.
The new regulations are similar to the UK model that splits the market into sophisticated and unsophisticated investors – except in Spain they are accredited and non-accredited.
Accredited investors will have no investment limit providing they earn more than 50,000 euros a year and have other investments of 100,000 euros.
Non-accredited investors have their crowdfunding activity capped at no more than 3000 euros an offering or 10,000 euros a year
Investment limits for companies have also been raised to encourage development in the market.
In Spain, around 75% of businesses look to banks for finance, whereas the figure is between 30% and 40% in the UK and USA, where crowdfunding is more prevalent.
“The changing limits are to encourage investors to dip into the market without taking too many risks,” said a Spanish government spokesman.
Uber deal for car sharers
Peer-to-peer lender Zopa and online ridesharing sensation Uber have teamed up to offer drivers loans to buy cars.
Zopa will offer drivers loans based on their credit rating with rates starting at 6.9% APR over 36 to 48 months. Maximum borrowings will be capped at £22,000.
Zopa has also indicated that another tie-up is on the way with car dealer Toyota as the main vehicle supplier.