Estonian equity crowdfunding platform Fundwise helps to overfund companies

Three companies have been overfunded with the help of an Estonian equity crowdfunding platform, Fundwise, since its launch this summer.

Equity crowdfunding is a way of raising capital for business from multiple investors by selling parts of it off. This way, the entrepreneurs also get access to a group of committed advisors, potential board members and the investors get to invest under the same terms as well as mitigate risk through diversification.

Henri Laupmaa, the CEO of Fundwise, said that since its recent launch, three companies have already been overfunded, using its platform.

“The successful trio represents a varied spectrum of companies – a local craft cider maker (Siidrikoda), a gaming company (Rogue Ambassador) and the rent-anything platform (RentMarket) that promises to be the Amazon for renting,” said Laupmaa.

All three overfunded their initial investment goals – Siidrikoda by 155%, RentMarket by 175% and Rogue Ambassador by 403%. A total of 77 new investors were attracted by the companies, according to Fundwise.

Fundwise team

Fundwise concentrates its activities to the Baltic region and helps find investors for SMEs in the region.

The investments start at €200-300 and the investor will get equity of the company in return, the company said in a statement. “If the campaign fails to raise the desired amount, investors will get their money back. Besides money the companies will gain their investors know-how and networks – which sometimes can be even more essential for development,” it added.

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Cover: Crowdfunding piggy bank (courtesy of The Delicatessen creative agency).

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About the author: Estonian World

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