Australia's VentureCrowd Platform Has Crowd-Sourced Its First Deal

Image: Mark Kolbe/Getty Images.

VentureCrowd, the Australian equity-based crowd funding platform, has closed its first deal, raising $1.2 million for taxi app company ingogo through its exclusive online platform.

The round provides one of the first major Australian examples of how equity crowdfunding can work to provide technology start-ups with much–needed capital.

The cash was raised from just under 50 small investors, ranging from $50,000 to $5,000 each. For that they get a holding in a trust which holds the stake in ingogo.

“This investment wasn’t available unless you came through VentureCrowd,” says Tim Heasley, COO of Artesian Venture Partners which runs VentureCrowd.

“It was massively oversubscribed on our end.”

Until now individual investors have only been able to access these types of deals by being on a favourite clients list with investment banks and putting up amounts of $250,000 or more.

“The response was amazing, with applications significantly oversubscribed, demonstrating that VentureCrowd is a robust, viable investment platform for startups and investors,” he says.

Heasley says more deals are coming down the pipeline.

Ingogo was founded in 2011 by Hamish Petrie, who sold his previous business Moshtix to what was then News Limited in 2007. While ingogo began as a taxi booking and in-app payments model, it evolved in 2013 to become a full mobile payments business.

One of the 50 individual investors in ingogo through VentureCrowd was Jonathan Herrman, chairman of Shoeboxed Australia and co-founder of StartNest.

“It was great to be able to get access to this deal,” Herrman says.

“It was the first time that I’ve been able to get access to a pre-IPO opportunity of the quality of ingogo. I would encourage investors to have a look at VentureCrowd to make sure they are aware of opportunities ranging from early stage to later stage investments.”

Sophisticated investors keen for unrivalled access to the most exciting start-up businesses in Australia can register online to become involved in other deals offered on VentureCrowd.

Investors can invest as little as $1000, with no maximum, on the VentureCrowd platform.

Now Read: Australian Taxi App ingogo Gets Into Bed With Xero After Raising Another $9.1 Million

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