InvestorHub, an online shareholder engagement platform, has received an additional $4m for its Series A round of funding. This top-up round was led by the previous backer, EVP, along with Archangel Ventures and Flying Fox Ventures. Notably, the new Series A now totals $9 million, growing on the initial $4 million obtained in May 2023 when Fresh Equities rebranded the company. Most notably, the initial round comprised the approval of post-raise funding of $1 million for strategic investors.
Growth of InvestorHub
Ben Williamson and Rhys Davies are the co-founders of InvestorHub. Their business model helps investors access certain sectors in ASX-listed companies that only large funds can access. InvestorHub, formerly Fresh Equities, raised $2.3 million in August 2021 from fintech founders, including Zip’s Larry Diamond, Adam Finger, and Wisr’s Tony Nantes.
The platform addresses a critical challenge faced by listed companies: communication with some shareholders and other outside institutions not included in the top twenty. The platform has grown three-fold in revenues after the rebranding and now caters to about 4% of the ASX-listed firms.
Co-founders of InvestorHub
Ben Williamson and Rhys Davis founded InvestorHub. They recognized a systematic problem in equity markets that hindered the growth of public companies: inefficient shareholder interaction. This was inferred from having helped close over 2,000 capital markets transactions with their affiliate, Fresh Equities. To meet this challenge, they created InvestorHub, a product that enables companies to improve the organization and quality of shareholder relations.
Since its inception in 2022, InvestorHub has assisted more than 70 public companies in reaching out to more than 100,000 investors per month and has mobilized more than $ 77 million in capital with time savings. Co-CEO & Co-Founder of GF, Rhys Davis, has vast experience in various organizations and has held numerous positions. Ben and Rhys are aligned with their goal of providing the connector for businesses and investors as InvestorHub is a data-driven, unbiased, and digitally oriented platform.
Vision and Strategic Focus
The capital increase will be used to gain more market share in Australia and foreign countries. One of InvestorHub’s major growth markets is the UK, which accounts for approximately 10% of its clients. InvestorHub is also still active in Canadian and North American exchanges, as it was 14 months ago during the first raise.
The communication does not end here; there is much more to InvestorHub’s vision. Ben Williamson, co-CEO of Futurist, said the company will build more features this year, such as artificial intelligence and machine learning. Some of these improvements are meant to enhance the efficiency of the products in prediction modeling and provide faster results for companies and small investors.
Impact on Retail Investors
Williamson focused on the role of retail investors in terms of liquidity, stock price fluctuations, and capital raising outcomes. Although some may think that small investors are not worth as much, they own approximately 75% of the shares. When applied properly, they can bump up the value of their shareholding by an impressive 139%.
Conclusion
InvestorHub’s recent funding raises its future goals to improve shareholder outreach, grow the user base, and develop more features. This is an important factor, especially as technology continues to put the power of investing in the hands of the masses through platforms such as InvestorHub.
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