Crowdfunding Market Snapshot

Crowdfunding is a rapidly growing market trend for funding of projects or startups.

• $2B in 2012 and $5B in 2013 raised by crowdfunding platforms.

2014 Crowdfunding Transactions, and New Sources of Small Business Capital Funding:

New York-based alternative lending company OnDeck has raised $77 million in a growth round led by Tiger Management with participation from existing investors Institutional Venture Partners, RRE Ventures, SAP Ventures, Google Ventures, First Round Capital, Industry Ventures, and Peter Theil. OnDeck offers short-term loans to small businesses that otherwise may not qualify, making the decision within minutes and the fund within a day. Launched in 2007, OnDeck has raised over $180 million in equity to date and will use the new funds to accelerate new product development, geographical expansion, and hiring.

San Francisco-based online investment platform CircleUp has raised $14 million in a Series B round led by Canaan Partners with participation from Google Ventures, Union Square Ventures, Maveron, and Rose Park Advisors. CircleUp leverages the new crowdfunding rules that allow private companies to raise money from multiple investors on the internet, and has already seen over 60 startups raise money using its platform. Founded in 2011, CircleUp has raised $23 million to date and will use the new funds to improve its data and transparency tools for investors.

Palo Alto-based small business financing startup BlueVine has raised $4 million in new funding led by Lightspeed Venture Partners, Greylock IL, Correlation Ventures, Kreos Capital, and Kima Ventures. BlueVine helps small businesses manage and accelerate invoice payment to access funding more quickly and avoid taking loans. Founded in 2013, BlueVine has just launched its beta service, which it will offer to target audiences next month.

Atlanta-based online lending platform Kabbage has raised $50 million in a Series D funding led by SoftBank Capital with participation from TCW, Lumia Capital, and existing investors including Thomvest Ventures, BlueRun Ventures, and Mohr Davidow Ventures. Kabbage provides working capital to small businesses that are unable to obtain credit from traditional sources, leveraging data to understand performance and deliver financing options. Founded in 2009, Kabbage has raised $106 million to date and will use the new funds to ramp up marketing and partnership efforts and build out its international business in the UK, Canada, and Asia.

 

Source links:

http://www.crowdfundinsider.com/

http://www.inc.com/eric-markowitz/will-crowdsourcing-ever-live-up-to-its-hype.html

http://www.crowdsourcing.org/

http://dailycrowdsource.com/

http://blogs.reuters.com/felix-salmon/2012/07/27/annals-of-dubious-statistics-crowdfunding-edition/

http://ncfacanada.org/canadian-portal-crowdcapital-infographic/

http://seedingfactory.com/wp-content/uploads/2012/09/Infographics-CrowdFunding.png