Birchal, the leading securities crowdfunding platform in Australia (crowd-sourced funding in Aussie) has revealed its first partnership with an outside investor to fund a startup that is listed on its marketplace.
Professional investors like VCs or Angels can provide important signalling for retail investors about expectations for the success of an early stage firm. Most startups fail, that’s how it works. Platforms can provide an efficient vehicle to pair pros with “ordinary Joes,” thus enabling access to a rising asset class while incorporating a higher degree of vetting. Of course, the terms count too and the best offerings should involve similar terms between the two sides.
Birchal reports that the Birchal First Syndicate saw A$1.9 million to three Victorian hardware startups within three months of its launch. LaunchVic provided funding of $300,000.
The companies that were part of the Syndicate include:
- Dovetail Electric Aviation: Raised $270,000 from 115 investors on 21 November.
- Cormagna, a medical technology business: Raised over $650,000 so far, with its offer set to close on 12 December.
- Volt Solar Tile: Secured over $1M to date, advancing its solar technology innovations ahead of its offer’s scheduled close on 12 December.
Birchal CEO Matt Vitale partnerships like this may reshape the funding landscape for startups.
“We’re thrilled to see such strong outcomes so soon after launching the Birchal First Syndicate. This milestone underscores the power of blending angel and retail investments to support hardware technology founders who face unique challenges with high development costs. The $1.9 million raised for Victorian startups is just the beginning. We’re proud to help create a stronger, more collaborative early-stage investment ecosystem that champions local innovation and drives economic growth, leveraging the power of Australia’s crowd-sourced funding regime.”
The Syndicate is said to be part of a larger initiative with LaunchVic via Angel investments.
LaunchVic CEO Dr. Kate Cornick said the partnership helps to provide access to capital for the underfunded hardware technology space.
“This is exactly the kind of outcome LaunchVic aims to achieve through our support for specialized angel networks. To date we have supported ten angel networks which have collectively unlocked $29.3M for Victorian startups and recruited more than 600 early-stage investors.”
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