One of Australia’s most exciting investment platforms announced today that it raised $2 million at a pre-money valuation of $10 million.
VentureCrowd, the equity-based crowdfunding arm of Artesian Venture Partners, raised the money through both a small group of cornerstone investors and its own equity crowdfunding platform, which could prove invaluable to an Australian startup scene lacking big investors.
Unlike traditional investors, VentureCrowd allows wholesale investors to contribute as little as $100 in property deals, although the average investment is currently at around $10,000-$30,000.
All of the start-ups on VentureCrowd are pre-screened to weed out those not yet ready for outside help and the fact that VentureCrowd invests via a trust means startups only have to deal with one investor, allowing more free time to actually grow the business.
On top of the new investments, VentureCrowd also partnered with cornerstone investor Kentgrove Capital to allow Australians to invest in Israeli start-ups for the first time, something previously only available to major venture capital firms in Israel and the US.
“The new raising will allow us to accelerate our growth, and focus on building our technology platform itself,” VentureCrowd founder Jeremy Colless told Business Insider.
“It will also allow us to prepare for retail legislation, build out our ability to trade on the secondary market and hire more people,” he said.
The deal with Kentgrove Capital not only opens up opportunities for Australian investors in Israel, it will eventually offer another avenue for international investors to spend on Aussie start-ups.
“The Israel deal is important because we want to be international,” Colless said. “At the moment we want to give Australian investors more opportunity, but we also want to offer Australian investment opportunities to international investors.”
So far VentureCrowd’s biggest success story has been taxi app InGoGo, which raised $6.2m through the platform.