Crowdfunding To IPO In 16 Months

Crowdfunding has reached another milestone as CityAM reports that :

“Freeagent, a cloud-based software-as-a-service accounting software company, is believed to be the first UK firm to launch an initial public offering (IPO) having previously raised growth capital through equity crowdfunding. The firm raised £1.2m from 700 investors on Seedrs in July 2015.”

This shows that the device for getting startups off the ground is maturing and that early investors can actually win (notwithstanding the extremely high failure rate).

However, the odds appear to remain worse than those for professional venture capitalists, so caveat emptor still.

About JeffKoeppel

I am a corporate/securities attorney in the Washington, DC area. Prior to joining the firm, I was a Senior Attorney Advisor in the Division of Corporation Finance at the U.S. Securities and Exchange Commission. I am a member of the Bars of the States of Maryland, New York and the District of Columbia. You can also follow this blog on LinkedIn at:
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