Lendified, a Canadian online lending platform, is cross-listing a securities offering on crowdfunding platform FrontFundr and DealSquare. Peter-Paul Van Hoeken, founder and CEO of Silver Maple Ventures, labeled the offering a “ground-breaking development for the private markets.”
DealSquare is a new platform created by NEO Connect and Silver Maple Ventures – the parent company of FrontFundr. DealSquare creates a channel to sell securities via investment advisors. According to a release, this is the first time a company in a pre-public listing phase has made its private financing round available to a broader range of investors, including the retail community.
Lendified is an online lender serving small businesses in Canada. The company also powers a SaaS platform called Judi.ai.
The total addressable market for the Fintech is pegged at CDN $33 billion but Lendified sees low hanging fruit of $250 million as 5% of the market is unmet demand. Lendified expects to be able to compete with traditional lenders, like banks and other online lenders, by providing both better rates (than competing Fintechs) and the money faster to approved borrowers.
Since platform launch, Lendified has originated over CDN $80 million in credit with an average loan size of CDN $80,000.
Lendified is planning a reverse take-over, announced the end of last year. Lendified will combine with Hampton Bay Capital (TSXV:HPB.P) and thus will see its shares publicly traded. Investors in the private offering may expect to have access to liquidity once the reverse takeover is complete.
The security offering on FrontFundr is seeking up to CDN $4 million. As of today, Lendified has raised CDN$3.2 million. The total is a combination of both DealSquare and FrontFundr so it is not easy to discern how much is coming from each platform. If Lendified raises the entire amount, investors will hold about 16% of the companies equity.
More information about the securities offering is available here.
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