FrontOffice Nordic AM (FRNT MTF B), a company that conducts corporate restructuring and provides advisory services such as economics, law and finance, raised capital on FundedByMe in early 2016. FrontOffice raised just shy of €600,000 on FundedByMe. FrontOffice then went on to list its shares on the Nordic Growth Market (NGM) becoming the first crowdfunded company to list on a public exchange in Sweden.
Since listing their shares, FrontOffice has had a respectable rise in share price delivering a solid economic return alongside the liquidity for investors that participated in the crowdfunding offer. Crowdfunding investors in FrontOffice – who bought shares for a minimum investment of € 53 received a per share price of SEK 2.50 when the shares initially traded. Today FrontOffice trades at just under SEK 5.00 / share.
“This is the first campaign for FundedByMe where our crowdfunding shareholders have been able to directly trade their shares on a stock exchange – and pretty much immediately were able to earn a profit from their investment. This awesome performance is further proof of the fact that equity crowdfunding is changing the finance and investment market for the better,” said Daniel Daboczy, CEO and co-founder of FundedByMe.
Johan Lund, MD of FrontOffice said the experience has been great for their company, as well as their shareholders.
“FrontOffice is planning to launch several highly interesting pre-IPO companies on FundedByMe in the coming months that we will crowdfund and then take to a stock exchange,” he predicted.
The step stone approach to raising early stage capital and then proceeding to a regulated venture exchange is a positive path for the investment crowdfunding industry in general. For shareholders to be able to decide whether to hold or sell is an important measure of overall success of the emerging securities ecosystem. It will be interesting to see what other types of companies FundedByMe lists prior to trading on an exchange. It will also be interesting to see if they pursue a similar path for their Asian operations.
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