Online startup funding platform Leapfunder has raised EUR 140,000 by issuing convertible notes to a large group of investors. The funding marks the closing of the first successful round via the company’s new platform, after having raised over EUR 500,000 for a handful of startups on its predecessor.
Leapfunder’s recent funding will be used to further develop their network funding platform as well as for international expansion. International interest in the product also translated in various international investors joining in the current round. Founder Tienko Rasker: “We’re very happy with our international investors. They’ve provided us additional capital to facilitate an earlier roll out to their countries. Our proposition adds a lot of value to both startups and investors.”
The Amsterdam based startup, currently part of Startupbootcamp’s 2014 class, offers startups a platform to issue convertible bonds. To this effect it has developed a standardised convertible structure: the Leapfunder Note, which can be used by the startups opting for the platform. Most advantages of using a convertible in startup funding also hold for the Leapfunder Note (valuation postponement, limited documentation, security for the investor), while it adds another advantage in the bundling of individual investors in one foundation which exercises the collective voting rights upon conversion.
Eat your own dog food
Like it did on their previous platform, Leapfunder itself was the first startup to raise via the new version. CIO Merien van Houten: “We have just made the transfer to the new software. Transfers like these are always a little tense, therefore we preferred to use ourselves as the guinea pigs for the new software. You only get real insights in your product if you also use it like an actual client.”
So far Leapfunder has been used by various startups including Startupbootcamp alumni Buzzoek, as well as current Rockstart class 2014 startup Crowdyhouse.
Disclosure: Author is an existing investor in Leapfunder.
Photo by Pieter van Marion (creative commons via Flickr)