Yesterday, Crowdfunder announced a successful $1 million seed funding round, which brings their total funds raised to $2 million. The money will be used to help Crowdfunder accelerate its growth for investment crowdfunding in the US, as well as speed their international expansion efforts in Mexico and Latin America.
The round was led by 500 Startups’ 500 Mexico, Rob Nail, K5 Ventures, Ben Goldhirsh, Sharon Chang, and private investments from US- and Latin America-based entrepreneurs. These investors helped raise a significant portion of the round, but Crowdfunder “ate its own cooking,” so to speak, to crowdfund the rest from its own network of accredited investors.
“The round is a nice validation of the strong growth of Crowdfunder,” says Crowdfunder CEO Chance Barnett.
For the team at Crowdfunder, this funding round comes at an opportune time for both their company and their model of business; Title II of the JOBS Act was recently enacted which allows startups to more publicly fundraise online. Over the last 145 days, the platform opened their doors for startups and for-profit enterprises to raise investments.
“The online investing and crowdfunding space is a red hot market right now with lots of attention and noise,” says Barnett. “Crowdfunder’s ability to raise investments from top early-stage investors in this competitive space shows its growing traction.”