InvestorHub Secures $9M in Funding

InvestorHub, a direct-to-investor marketing platform, has secured $4 million in an extended Series A funding round. This latest round, led by EVP with follow-on investments from Archangel Ventures and Flying Fox Ventures, boosts the total funding to $9 million.

The funding comes less than two years after the company’s rebranding from Fresh Equities. InvestorHub first raised $4 million in May 2023 and has since tripled its revenue in 13 months, which led to renewed investor interest.

The current round was oversubscribed, with an additional $1 million allocated for strategic investors, bringing the total capital injection to $5 million beyond the original $4 million.

InvestorHub plans to use the funds to expand its market presence both in Australia and internationally. Presently, 4% of ASX-listed companies, including Retail Food Group, use the InvestorHub platform. The company aims to grow its client base in the UK, which already represents about 10% of its users.

Co-founder and co-CEO Ben Williamson commented on the opportunity the new capital represents. “Historically, markets have leaned towards intermediaries, which created a disconnect between companies and investors. This has resulted in inequities in the market and a general disregard for retail investors. Technology is now enabling access to new investor types that impact liquidity, share price movement, and capital raising outcomes.”

Williamson highlighted the overlooked mid-register investors who, despite being less visible, account for a significant portion of trading activity. “Investors outside a company’s Top 20 represent around 24% of the shareholder registry and are responsible for about 50% of all trades. Small retail investors, or ‘long tail’ investors, make up roughly 75% of shareholders and drive a quarter of daily trading volume.”

He added, “Retail investors significantly influence share prices. Ignoring them means overlooking a key factor in share price dynamics.”

Williamson believes technology will address the issues and misconceptions about shareholder engagement. “Previously, executives struggled with scalable methods for understanding and communicating with retail investors. This challenge contributes to the perception that being listed is a disadvantage.”

The company’s vision is to provide tools that enable companies to better manage investor relationships and enhance market performance. “We aim to transform being a listed company into an advantage, not a disadvantage,” Williamson said.

Justin Lipman, Partner at EVP, praised the investment, stating, “Our continued commitment to InvestorHub reflects our confidence in the company’s product capabilities and the quality of the team. With their three-fold growth since our initial investment, InvestorHub is becoming one of Australia’s notable software platforms.”

Williamson also addressed the role of intermediaries, noting that many are not acting in bad faith. “Our aim is to collaborate with intermediaries to support the best interests of ASX executives and boards, particularly those outside major indices, representing 85% of the ASX.”

Looking ahead, InvestorHub plans to disrupt the capital market space by expanding its presence in Australia and the UK and exploring broader international markets. There is notable interest from Canadian and North American exchanges.

The company’s strategy involves integrating brokerage and investor relations sectors to offer a streamlined approach for optimising market outcomes.

For further details, visit InvestorHub’s website.

Last Updated on July 29, 2024 by Nick Ross