Irish-based venture private equity group VentureWave, and Estonia's investment trading platform Funderbeam, have announced they’ve agreed a 'game-changing' deal as the dynamic funding entities join forces to offer a plethora of funding opportunities on a global scale. They are creating a global entity which will serve institutional and angel investors in venture deal execution and secondaries.
VentureWave which supports high-impact entrepreneurs, takes a majority stake in funding and trading platform Funderbeam in a $40 million investment round which includes co-investors, and long time Funderbeam backers, Mistletoe, Draper Associates, and Kaidi Ruusalepp, the founder and CEO of Funderbeam.
“This transaction creates a powerful platform to fast forward Funderbeam’s vision which is to serve venture investments across borders and create a unique secondary market for private assets. The timing of the transaction couldn’t be better - we are strong at a time when the market is ready for our solution,” says Ruusalepp.
This meeting of minds will see VentureWave scale Funderbeam’s technology across venture assets giving it the scope to target the entire life cycle of global venture investments and secondaries, from early-stage angel funding until pre-IPO secondaries. VentureWave now has an evolved US market entry strategy through Vestiver, the institutional venture platform.
“VentureWave’s investment in Funderbeam is a game-changer for the industry, shaping the future of venture markets and enabling access to global venture deals and secondaries. Together, we have the necessary assets, technology, and capital to take on the entire venture investment life cycle. This represents a transformative moment to put impact at the centre of the investment industry," says Alan Foy, VentureWave Chairman.
Funderbeam will continue to serve investor networks and provide Private Market as a service for private investor networks - additionally serving institutional clients - VC funds, family offices, brokers and investment banks, once all the ink has dried. Until the transaction is approved by the regulators in the UK, Singapore and Estonia, no further corporate level actions and decisions will be made.
“Mistletoe is supporting impact companies. Companies that introduce change for the better in a way we live and do business. Funderbeam has been a pioneer in changing the way that the venture market works - democratising investments in start-ups and enabling exits when needed. Solutions that puts founders first in their mission. It takes endurance and resilience to introduce novel models in the financial sector and we are very happy that the other impact investor, VentureWave, is joining in," says Taizo Son, founder of Mistletoe.
“Private companies from venture investments have a long history of difficult liquidity. Our portfolio company, Funderbeam together with VentureWave allow venture backed start-ups to be liquid. This is a major breakthrough and the new liquidity will allow for GPs and LPs to more easily trade otherwise illiquid positions,” says Tim Draper, founder of Draper Associates.