New: Straight to Trading!
We are super excited to publicly announce that we are now offering trading of shares that have not been issued as part of a campaign on Funderbeam.
Better yet, the first company is ready to start trading: This Tuesday, November 20th, Ampler Bikes will start trading shares from their Fundwise campaign on Funderbeam. More on this below, but first, let’s explain why it makes sense to make shares tradable.
Why make shares tradable?
Straight to Trading is a process where investors can make their investments tradable without companies issuing new shares and raising capital. This simply means that all the current shareholders in the company will keep their stakes in the company as they are, but will be able to trade them on the Funderbeam Marketplace.
Benefits:
- Adds liquidity
- Cap table management is easier
- Reporting and investor relations management in one place
- Indicates the value of shares
Case study: Ampler Bikes
Ampler previously raised €93,200 directly from 83 investors. Since then, the company has grown a lot, expanded to new markets, and raised funds at a higher valuation.
The problem:
- Cap table management is burdensome with nearly 100 shareholders
- Reporting takes too much time
- Inefficient for investors to trade their shares
Having invested in the company very early on, I am very happy to have the option to sell my shares if I think the time is right. I’m still holding on to all my shares, but it’s great to have the possibility and also get a sense of what other investors are willing to pay.
— Madis Müür, Investor in Ampler
Solution:
Ampler offered all their existing shareholders, excluding founders, the opportunity to transfer their shares to Funderbeam, making it easy for them to offer their shares for sale and manage the sale process.
Ampler has a unified reporting tool, where they can easily share updates and KPIs once per quarter, and where investors can post questions so the founders will not have to answer the same questions multiple times.
As a result, Ampler Bikes has fewer shareholders on their cap table, easy reporting, and their investors can trade their investments when they want.
Having all investors in one place saves us a lot of time as communication and decision-making are a lot easier. For Ampler as a company it was an important bonus that our cap table looks a lot cleaner now.
— Ardo Kaurit, CEO
How does the process work?
- Step 1 After due diligence on company and shares, a Service Agreement is signed between the company and Funderbeam Markets Ltd
- Step 2 The company informs shareholders about plans to open trading on Funderbeam. Funderbeam on-boards shareholders and Nominee Holding Agreement is signed between shareholders and Funderbeam Markets Ltd
- Step 3 Shareholders transfer shares to Funderbeam Nominee account and investments are shown in investors` wallets
- Step 4 Admission Agreement is signed between the company and Funderbeam Markets OÜ; trading with investments can be opened.
Get started
If you are interested in investing in Ampler, trading will be open on Tuesday, November 20th, at 10AM EET.
If you are a shareholder in a company that would be interested in starting to trade on Funderbeam, don’t hesitate to get in touch via trade@funderbeam.com.
Investing in early-stage and growth companies puts your capital at risk. Please read our Risk Disclosure Statement.
The information appearing in this blog post is approved as a financial promotion by Funderbeam Markets Limited (authorised and regulated by the Financial Conduct Authority under FRN 794918). Complete and comprehensive information about an investment opportunity is only available to the investors who have been approved by a Funderbeam group entity. Funderbeam does not provide investment advice or any recommendation to invest. The investment opportunity should not be considered as an offer to the public and is not directed at or offered to anyone located in a jurisdiction where it is unlawful to do so.
