Funderbeam, a startup investment marketplace, raises $2.6 million in new funding led by Draper Associates, Thomson Reuters, and IQ Capital

Funderbeam, a new startup investing in global markets built on the blockchain, has raised $2.6 million in a new round of funding led by Draper Associates, Thomson Reuters, and IQ Capital. Investors from the previous round, business angels and 3TS Capital Partners, also participated in this round.

Founded in 2013, Funderbeam has created a blockchain platform through which companies can conduct cross-border financing and transactions. Funderbeam is currently challenging the traditional capital markets that are full of inefficiencies, middlemen, and high costs.

Kaidi Ruusalepp, the company’s CEO and founder (former CEO of Nasdaq Tallinn Stock Exchange), said:

“Funderbeam is the exchange of the future, the trinity of data, financing and trading, all cross-border and on the blockchain.”

“Last year, angel and venture capital investments worldwide went to over $110 billion in startups. Startups are true growth companies – they are the ones that were once listed on the stock market. The problem with startup investing is that there is no liquidity. Funderbeam has created a new global exchange model that is built for startups from the ground up. We will grow with them. We will bring liquidity back to investing.”

Kaidi Ruusalepp, CEO and Founder of Funderbeam

One of the lead investors in this round of financing is Draper Associates, whose founder Tim Draper is very serious about the current market situation:

"Over the past decade, the stock market has stagnated and is no longer functioning. Companies that used to go public to raise capital are now cashing out. Angel investing, venture capital and private equity are gradually replacing the need for going public, but this flow is 'offline' on paper and no longer has liquidity."

He continued:

“It’s crazy that the sector investing in innovation is still using processes from the last century. It’s time to move the startup industry onto the blockchain! It’s time to revolutionize the public markets!”

This kind of change is what Funderbeam is working on and has already started. So far, Funderbeam has launched three successful financing projects, and these investments are now able to be traded on the blockchain.

Funderbeam co-founder Urmas Peiker further elaborated on Funderbeam’s daily working methods:

“Some companies are maintaining the status quo, some are talking good stuff but not scaling or evolving, and then there are others who are, as I say, quietly evolving. These companies and businesses ‘float like butterflies and sting like bees.’ That’s what we envisioned with Funderbeam from the beginning – put the egos aside and get the job done.”

London-based IQ Capital, which also led the round, will be a great bridge for Funderbeam as the company becomes increasingly active in the UK. IQ partner Max Bautin said:

“Funderbeam has a strong and ambitious founding team that is determined to disrupt a multi-trillion dollar market. We are excited to support them.”

In addition to the new investors, all of Funderbeam’s previous investors also participated in the round, including Bockspring, 3TS Capital Partners, Jaan Tallinn, Kei Aar, David Braben, Chris Wade, Joe Schorge, Tim Parsonson, Richard Parsonson, Simon Thorpe, Murali Krishna, Pascal Isbell, David Cummings.

3TS Capital Partners, one of Europe’s leading technology development investors and one of Funderbeam’s earliest backers, said they are pleased to continue their support. Pekka Maki, Managing Partner at 3TS, said:

“From the beginning, we have been impressed by the vision and passion of the Funderbeam team. The platform they have built will change the way startups are financed. It is great to see new partners who are equally interested in Funderbeam’s initiatives.”

Funderbeam was originally a company based in Tallinn, Estonia, but a year ago they moved their headquarters to London.

Funderbeam was founded in 2013 by Kaidi Ruusalepp, Urmas Peiker and Villu Arak. Prior to this round of financing, the company had raised $2 million in funding.