Funderbeam review shows that Funderbeam is based in Estonia and United Kingdom. Funderbeam was founded in 2013 by Kaidi Ruusalepp and Urmas Peiker.

Kaidi had led Nasdaq Tallinn as CEO since 2005, noticing many inefficiencies in the public markets. Companies list late and at high costs, meaning investors can’t access good growth companies. In addition, many investors have a poor understanding of how to succeed in the market and typically buy high and sell low.

The idea came to create a game to teach young people how to invest, using startups as a more relatable subject than stocks. Even before starting development, the game evolved into what Kaidi and Urmas really saw a need for: A platform where investors could efficiently invest and trade companies while in their growth stage.

In early 2016, Funderbeam Markets launched with the first four companies raising funds, and shortly after they were trading on the secondary market. In August 2018, Funderbeam started operating as a regulated UK entity, Funderbeam Markets LTD, after being authorised by the UK Financial Conduct Authority.

Key facts about Funderbeam

Estimated annual returns: N/A

Launched: 2013

Autoinvest: No

Loan security: No guarantees

Provision fund: No

Registered investors: 10000+ in April 019

Buyback guarantee: No

Minimal investment: €10

Time to become invested: Varies on companies listed

Time needed managing: Low

Regulation: Yes

Country of operation: UK and Estonia

Borrowers verification: By the platform

Accepted currencies: EUR, GBP

Accepts investors from: Europe


Funderbeam Review: Pros and Cons

PROS

– Strong track record with a database of more than 500.000 startups and investors
– Strong underwriting team
– Cross border investments
– Regulated

CONS

– Investments into startups are risky. Returns are not guaranteed


Competitors

Kickstarter, Indiegogo, Equitynet, Seedrs

Funderbeam Review: what I have experienced so far

Funderbeam’s blockchain technology allows investments to be tokenized. Each digital token represents an owner’s rights in an investment syndicate. Companies can use this syndicate model to raise a round privately with experienced investors, or publicly raise funds through a crowd. If they publicly raise funds through a crowd, then they only officially add one investor (the syndicate lead) to their cap table.

Funderbean is one of the Europe’s largest equity crowdfunding platform. It helps for new business or investment projects to raise funds from individual or institutional investors. Investors can browse a selection of 500,000+ startups, access advanced data about each one, then decide where to invest their money. Investors can pool their money together or purchase digital tokens representing their share in the company. On the startup side of things, founders can spend less time fundraising and more time on growing the company.

Some words about opening account at Funderbeam. For me it was easy process, all I needed was to click login with Linkedin account (you also can choose to do that by filling your details as well). And that’s it. Later you have to upload your ID card copy to Funderbeam dashboard and wait for confirmation. Add funds to Funderbeam account also is enough easy and platform has a wide selection of alternatives to do that: you can choose to make a deposit with Card or to make bank transfer or use TransferWise.

Secondly, some facts about my experience at Funderbeam. I know that investments into startups are more risky and it takes way more time for startups to execute their ideas and later sell the companies. Howwever, Funderbeam is different to other crowdfunding platforms, because it provides tokenized investments into startups. It means investments can be traded (are liquid) all the time with other investors. Of course if the startups do not exit, then you will be able to trade your tokens (investments at a lower price) compared to the amount you have paid during the campaigns.

All in all, Funderbeamhas a lot experience in crowdding industry. They have the biggest database of investors and startups in Europe. Through a syndicated funding model, investors can enjoy the money and expertise of intelligent lead investors while also accessing an enormous amount of passive capital. On the other hand, crowdfunding is more for sophisticated investors who are not afraid to lose their investments and might not be the right tool for investors who seek to earn stable returns.

Funderbeam review written by Tomas Medeckis