October 9, 2014
The Los Angeles based company was initially aiming for $2.5 million in total funding, but due to significant investor demand the round was opened up to additional investors and oversubscribed at $3.5 million. The funding will be used to continue growth and expansion in funding leading companies in the cross-over area between technology, digital media, and entertainment.
“Crowdfunder is a terrific resource for time-strapped entrepreneurs,” says William Quigley, one of the investors and current Managing Director of Clearstone Venture Partners. “In a matter of weeks, a startup can fill its coffers with the capital it needs to build and launch a new product or service.”
Part of the appeal for the investors is that Crowdfunder has already hosted successful and highly visible equity crowdfunding campaigns that cross technology and media. Their community consists of notables like Barbara Corcoran, Neil Young, Mark Cuban, TechStars, and Tim Draper.
“After more than 20 years of funding startups, I am excited that a resource like Crowdfunder has arrived,” says Quigley. “In a matter of minutes, I am able to identify the best new business concepts and most talented entrepreneurs who fit my investment profile.”
Title II of the JOBS Act was implemented in September 2013, and since then Crowdfunder has played a part in the growing trend where companies first validate and pre-sell their idea on sites like Indiegogo and Kickstarter. These companies then translate that momentum into successful equity crowdfunding campaigns on the Crowdfunder platform.
Neil Young’s PonoMusic recently went this route, raising an equity round of the platform as a follow up to pre-selling 15,000 units via a $6.2 million Kickstarter campaign.
“We are uniquely positioned in the heart of the growing tech and media renaissance in Los Angeles,” says Chance Barnett, CEO of Crowdfunder.com. “Our momentum is now attracting top tech and entertainment talent and projects as we empower the crowd to invest in these companies for as little as $1,000 at the same terms as, and alongside, notable angels, VC firms, and experienced financiers.”
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