Direct-to-investor marketing platform InvestorHub, has secured $4m in an extension funding round spearheaded by EVP.
InvestorHub, originally known as Fresh Equities, embarked on this second funding venture less than two years after a strategic rebranding. Following an impressive tripling of their revenue over 13 months, the company attracted heightened investor interest, leading to an oversubscribed round.
The round includes a provision for an extra $1m post-raise, inviting further strategic investors and bringing the total capital to $5m atop the initial $4m.
InvestorHub operates as a pivotal platform where 4% of ASX companies, like Retail Food Group, engage with investors. The platform has identified the UK — accounting for about 10% of its clientele — as a crucial market for potential growth.
The newly acquired funds are earmarked for broadening InvestorHub’s market share both in Australia and internationally. The company aims to use this capital to double its year-over-year revenue. Plans include the introduction of advanced artificial intelligence and machine learning capabilities to enhance product efficiency, bolster prediction modelling, and expedite insightful deliverables for businesses and investors.
InvestorHub co-founder and co-CEO Ben Williamson highlighted the transformative potential of the recent capital influx. “Historically, markets have always leaned in favour of intermediaries, resulting in a disconnect between companies and investors, unfair (and even weakened equity) markets and a general disregard for retail investors.
However, technology is granting access to new types of investors who are having a measurable impact on liquidity, share price movement, and capital raise outcomes,” Williamson explained.
He further detailed the underappreciated power of ‘long tail’ investors, who represent a significant portion of trading volume and can dramatically enhance their shareholding value when effectively engaged.
Justin Lipman, Partner at EVP, also expressed strong support for the ongoing partnership with InvestorHub, citing the impressive growth since their initial investment and the potential for future expansion.
Looking ahead, InvestorHub is poised to continue its disruptive trajectory in the capital markets, expanding its footprint in Australia, the UK, and potentially entering other international markets like Canada and North America.
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