Australian-based equity crowdfunding firm, VentureCrowd, has embarked on the country’s largest ever crowdfunding investment.
The project aims to raise between $3 and $4 million for mobile payment startup, Ingogo.
Ingogo is raising $12 million total from investors, up to $4 million of which will be raised through VentureCrowd’s exclusive online platform for investors, supported by Artesian Venture Partners.
The current effort follows on from a campaign in late 2014 that raised $1.2 million of a $9.3 million total fundraising round.
Ingogo founder and chief executive, Hamish Petrie, said VentureCrowd had helped Ingogo reach a range of investors it wouldn't reach through traditional channels.
“The last raising through VentureCrowd would have placed it in the top 10 US crowdfunded raises. This one will take it up another level.
“We want to deliver further results around multiple initiatives including our recent national taxi roll out, where we've added Brisbane, Perth and Adelaide to our Sydney and Melbourne Coverage. This capital will drive all these initiatives harder, has allowed us to upscale our growth and revenue forecasts and put us in a great position for an ASX listing. We will pick the right moment for that,” he said.
VentureCrowd chief executive, Jeremy Colless, said the company had already validated the value of equity crowdfunding in past investment rounds, but the latest round proved the investment method is here to stay.
“Sophisticated investors are immensely interested in gaining access to opportunities they wouldn’t see elsewhere. That possibilities would increase immensely if legislative changes enabled retail investors to take part as well,” he said.
Ingogo was founded in 2011 by Hamish Petrie, who sold his previous business, Moshtix, to News Limited in 2007. While ingogo began as a taxi booking and in-app payments model, it evolved in 2013 to become a full mobile payments business.
Investors can invest as little as $1000, with no maximum, on the VentureCrowd platform.