The equity crowdfunding space is very dynamic and constantly evolving. As an industry, we still figuring out what works (and what doesn’t) and are coming up with innovative ways to continue improving the offering available to investors and entrepreneurs.
We think that an equity crowdfunding platform that remains static won’t be in business for very long. So in 2015 we’ve been working hard in what we’ve informally dubbed the “Eureeca Product Lab” to come up with new features and products for 2016 that are based on feedback we’ve received and experience we’ve gained during our first two years of operation.
The first of the new features and products slated for release in 2016 is the Pre-raised Capital feature (the other features and products will be detailed in subsequent posts).
With increasing frequency, businesses are raising on Eureeca as a part of a larger round that includes investments that have already been secured before their campaign begins. For example, a business may have already secured $500,000 of a targeted $1,000,000 round. They will then raise the remaining $500,000 on the Eureeca platform so they can exploit the many benefits that equity crowdfunding has to offer.
We, along with many of the entrepreneurs that we work with, think that total size of the round ($1,000,000 in our example) should be reflected on Eureeca so that investors have a clearer picture about the business and its raise. There is a big difference between investing in a business raising 500k and a business raising a million.
Therefore, the raised capital barometer that indicates the percentage of the campaign completed will display Pre-raised Capital (in purple — see above images), the funds raised or negotiated prior to the campaign and not channeled through Eureeca, along with the capital raised via Eureeca (in green, as before).
In terms of crowdinvesting functionality, nothing changes for you as crowdinvestors. You’ll just have a more complete idea about the businesses raising on Eureeca and what they’ve raised offline, which can be important in determining whether you want to invest or not.
FindMeHealth, a UK healthcare comparison and book portal that went live on Jan. 13, is the first to test out the Pre-raised Capital feature. The above image shows the $45,000 of pre-raised capital and $34,000 of capital invested via Eureeca as of Jan. 18.