By TONY QUESTED, Less than a year after its launch, SyndicateRoom in Cambridge has been named the fastest growing equity crowdfunding platform in the UK, and is increasingly being considered a major player in the market.
According to Tania Ziegler, Programme Manager at Knowledge Peers which has collated the data, SynidcateRoom’s growth is more than double that of the UK industry itself.
She said: “Since the end of 2013, the cumulative growth of funding executed by equity crowdfunding platforms in the UK has just about doubled, showing an increase of 97 per cent. SyndicateRoom has proved that the industry standard is just not fast enough for them! As a quickly, growing platform, SyndicateRoom has increased by a staggering 203 per cent against the same time-frame.
“This makes this equity platform the fastest growing platform in the space and within the top five platforms in terms of scale, according to our data.”
SyndicateRoom’s success rate for fully funding or overfunding deals also far surpasses the market standard – almost treble the norm. In the past six months, the platform has successfully funded 90 per cent of the startups it has listed, whilst the industry average, according to Knowledge Peers, is 31 per cent. The platform has helped to close over £6 million worth of deals over the last six months and having the business at the heart of the Cambridge technology community is clearly a factor.
The UK Equity Crowdfunding industry is experiencing enviable market growth; Knowledge Peers reports a 95 per cent increase (from £21m to £41m) on the total funding raised by equity crowdfunding in the six months to April 2014 against the six months to November 2013.
SyndicateRoom’s market-beating growth means it is now achieving scale comparable to equity crowdfunding leaders Seedrs and Crowdcube and is increasingly being viewed as a key player in the industry.
SyndicateRoom differentiates itself from other major platforms by only listing companies that already have the backing of professional investors or business angels, who are putting their own money at risk. The crowd invest alongside these seasoned investors.
Startups selling equity on the platform have ranged from e-Go aeroplanes – the first business to design and build an aircraft in the UK in decades – to the cloud-based pay-as-you-play jukebox Psonar, and the makers of the world’s first urinal videogame, Captive Media. Angel investors have included industry heavyweights such as David Ryan, Peter Cowley and Hermann Hauser.
SyndicateRoom’s CEO Goncalo de Vasconcelos said: “We are delighted to hear that we’re currently the fastest growing platform in the equity crowdfunding space; especially since this industry is growing so fast in itself.
“We have been working tirelessly to build a platform that works both for investors – who for the first time ever are given the opportunity to gain access to real angel investments – and entrepreneurs, who are able to close funding rounds quickly and efficiently through our platform.”