On Thursday, Symbid, one of the first investment crowdfunding platforms worldwide, announced its full year 2014 results.
Korstiaan Zandvliet, co-founder and CEO of Symbid Corp, stated:
“We are pleased to report continued exponential revenue growth ahead of average industry figures. Our results are a reflection of our commitment to successful innovation and the creation of long-term value for our shareholders. 2014 saw our Company enlarge its share in a rapidly emerging market while investing heavily in developing advanced investing, monitoring and data tools.
“We are now in a position to begin reaping the financial benefits of these new products in the form of monthly recurring revenues. As we look ahead to 2015, we expect to again deliver results consistent with our strategic vision of becoming the leading European online funding platform. In this sense, the launch of The Funding Network and incorporation of Symbid Italia in early 2015 are both major business milestones.”
Summary of Full Year 2014 Financial Performance:
- Total revenue grew by 248% versus 2013 to $276,325.
- 97% of revenue attributable to transaction-based model of core investment crowdfunding business, consistent with 2013.
- Selling, general and administrative expenses increased by 404% year on year to $2,151,679 primarily due to the hiring of an internal software development team, share-based payments made to staff members, external contractors and a strategic alliance in 2014.
- Research and development costs increased by 306% year on year to $320,032 due to the Company’s investment in the development of a cloud-based monitoring product, released in early 2015, and other soon-to-be released financial technologies.
- Total operating expenses increased by 155% year on year to $3,318,471, of which share-based payments account for 29%, as the Company invested heavily in internal technological development.
- Net losses increased by 124% year on year to $2,821,794 in line with the Company’s commitment to creating long-term value for its shareholders through successful innovation.
2015 Commercial Outlook:
- In December 2014 the Company signed a partnership with leading financial advisory firm Credion to process an expected $800m transaction volume in 2015, which the Company expects to result in new monthly recurring revenue streams attributable to its cloud-based monitoring product (released in February 2015) and soon-to-be released deal-making product.
- The Company underwent a successful re-launch of its website and partial rebranding in March 2015 in line with its repositioning to a more holistic funding platform, known as The Funding Network™, connecting traditional and alternative financing options in one go-to platform.
- The Company expects to continue its ongoing release of new products and services with the launch of a loan product in the second quarter of 2015, resulting in additional transaction-based revenues.
- The formal incorporation of Symbid Italia S.p.A. in February 2015 represents the first stage of a European roll-out which the Company expects to continue throughout 2015. The Company intends to commercialize this international expansion in the second quarter of 2015.
- Management completed an initial closing of a Private Placement Offering raising $649,116 to support the growth of The Funding Network™.
- The Company is actively pursuing a capital raise strategy in order to accelerate the horizontal and vertical expansion of its funding network and balance cash flow. 2014 saw the Company focus on the internal development of technology thereby creating long-term value through successful innovation. The Company intends to bring this financial technology portfolio to market in 2015.