In just four days Australian startup Crowd Mobile crowd funded more than $360,000 in a pre-IPO raising using online platform VentureCrowd.
The crowd funding round was part of the company’s $3.8 million secondary raising. Founded in 2009 Crowd Mobile now operates in 13 countries with its services Passion for Fashion, Bongo Thinks and What Would Jesus Do.
“We believe in the power of the crowd to get things done, so it was only logical that we used the VentureCrowd platform to raise required funds before our public listing,” Crowd Mobile CEO Domenic Carosa said.
“It was quick and easy to get set up and gave us access to investors we otherwise may not have met, while retaining the simplicity of a single shareholder structure. Crowdfunding and crowdsourcing of all types isn’t the future; it’s happening now.”
The company’s products and services allow customers to crowdsource answers to questions, paying a small fee for each answer received.
Last financial year Crowd Mobile charged for more than 3.4 million questions, generated more than $9.8 million in revenue and made circa $2.2 million in EBITDA.
The Crowd Mobile funding is the latest in a series of successful investments in Australian companies using equity crowdfunding, an investment method that the Murray Inquiry recommended be extended to more retail investors late last year.
VC outfit Artesian Venture Partners run the VentureCrowd platform which last year raised $1.2 million for mobile payments company Ingogo, and $50,000 as part of a larger angel funding round for fashion technology startup Fame & Partners.
“The investors that participated in this funding round through VentureCrowd would not have had the opportunity to take part without the VentureCrowd equity crowdfunding platform,” Artesian Venture Partners COO Tim Heasley said.
“We have been able to identify potential investment deals like Crowd Mobile, Ingogo and others that provide a more efficient and vastly superior way to make investments in high-growth technology companies.
“We’re beginning to see many more sophisticated investors take an interest in this type of crowdfunding, which we believe is vital to ensuring the future success and continued growth of Australia’s technology ecosystem.”