Just a little over a year after its founding, the VC-equity crowdfunding platform raised $25M from investors to continue investing in early stage startups
Just after its first anniversary, equity crowdfunding platform OurCrowd raised some funding of its own and on Monday, April 28, announced it closed a $25 million Series B round.
OurCrowd will use the funding to further expand its activities in Israel and worldwide and to provide general partner funding for the deals on its website. Terms of the investment and a full list of the participants were not disclosed, although Geoff Levy, the former CEO and chairman of Investec Bank Australia, and Andrew Heyer, Mistral Equity Partners CEO, were named as investors in this round. OurCrowd CEO Jon Medved told Geektime that the entire $25 million came from individual investors. He declined to name how many, other that it was “dozens.”
“We are delighted to have closed this major funding milestone for OurCrowd,” OurCrowd CEO Jon Medved said in a Monday statement. “As we look back on our first year since launching in February 2013, we are gratified by the support of our global community of 4,000 accredited investors, our talented group of entrepreneurs and the 36 portfolio company teams. This additional funding will allow us to extend our global leadership in equity crowdfunding for early stage companies.”
In an interview with Geektime, Medved said he was very happy with the funding, and what it OurCrowd will be able to do with the money. He said the money will be used to invest in their portfolio companies as we as for opening new offices across the globe. Right now OurCrowd is opening offices in New York and Silicon Valley, he said.
One year in
Sort of like Kickstarter, but for millionaires, OurCrowd started as an early stage investor for Israeli companies and has since become the world’s largest equity crowdfunding firm in terms of dollars invested through its platform. Prior to the latest round of funding, OurCrowd raised $5.5 million in Series A funding in February 2013. It has also raised an additional $43 million for its portfolio companies from investors in 26 different countries. A statement from the company said its Series B deal is the largest investment round in the equity crowdfunding sector to date, according to published data.
The fundings are helping OurCrowd invest in more global startups. Four of its last ten equity crowdfunding deals were with companies that are not based in Israel. The size of its investment rounds is also growing to a high of $3.5 million (BioCatch) in a single deal, up from several hundred thousand dollars. Eighteen portfolio companies have raised at least $1 million on the platform.
Jerusalem-based OurCrowd is a hybrid VC-equity crowdfunding platform that invests its own funds and funds from accredited investors in early stage companies. Members of OurCrowd choose which deals they want to invest in and must invest at least $10,000, while meeting stringent accreditation criteria. The portfolio companies gets post investment support, and are assigned industry experts.
OurCrowd was founded in a garage in February 2013 with six employees. Within the first 12 months it grew to 30 employees, reviewed 1,550 business plans and met with 775 entrepreneurs.