It is absolutely necessary for successful VCs to equip themselves with the proper tech tools that will allow them to close better deals and be more efficient in doing so, as we have covered in our previous articles of the VC Tech Stack series. We continue our exploration of the topic and dive deeper into the equity crowdfunding and matchmaking platforms for startups and investors. In today's dynamic investment landscape, these platforms are gaining more traction as valuable tools for both sides of the investment equation.
What are the matchmaking and equity crowdfunding platforms
Matchmaking platforms are a bridge between startups and investors, connecting entrepreneurs with VC firms. They aggregate data on fundraising companies and often allow for precise matches, based on specific investment criteria from the VC funds and their preferences. The result is a more efficient and effective dealmaking process that maximizes the chances of a successful and profitable partnership.
The second type of platforms is equity crowdfunding ones — digital marketplaces where fundraising startups can showcase their innovative ideas and secure funding in a less traditional way. They can access a wide network of investors, ranging from accredited institutions to private individuals, who can often start co-investing with very small sums of money. On the investors' side, the benefits of crowdfunding include easy access to a variety of ingenious projects and a simplified deal-making process, as they can reduce many steps, such as taxing due diligence, often provided by the platform.
Why matchmaking and equity crowdfunding platforms are useful for investors, and what benefits they provide
Both types of platforms offer startup and VC ecosystem players numerous advantages and possibilities, such as:
- access to a broader pool of investment opportunities, which increases chances for higher returns and bigger portfolio diversification;
- efficient and streamlined process for discovering and evaluating promising startups;
- easy and transparent communication;
- data-driven analysis and machine learning algorithms for informed investment decisions;
- access to real-time verified data from one source, no need to browse multiple data points;
- easier assessment of the startup based on aggregated metrics, which allows investors to evaluate market trends, and identify potential risks or opportunities.
Matchmaking and equity crowdfunding platforms also contribute to a more inclusive and diverse investment landscape, by creating opportunities for underrepresented founders, who may face barriers in accessing traditional funding channels.
So without further ado, let’s discover some of the leading crowdfunding and matchmaking platforms.
List of matchmaking platforms
Vestbee
Vestbee is a leading matchmaking platform, with a wide range of projects that contribute to the development of the European startup & VC ecosystem. It brings together startups, VC funds, accelerators, business angels, and corporates in Europe (with a special focus on the Central & Eastern parts) as well as emerging markets in the EMEA region, allowing for an improved deal flow, more efficiencies in the investment process, and a better exchange of information across the ecosystem.
- Vestbee provides startups with free fundraising tools, access to a wide network of VC funds, acceleration programs, mentors, community and the startup discounts.
- VC funds can not only access relevant data and key people from the industry, but also share deals and keep interesting projects on their radar.
- Accelerators and business angel networks can collect and manage startup applications and share portfolios with mentors and investors through Virtual Showrooms.
The platform also hosts one of the biggest startup events and challenges, serving as a catalyst for innovation in the region and beyond.
AngelList
AngelList, a US-based website, serves as a comprehensive platform connecting startups, angel investors, and jobseekers in the startup ecosystem. It streamlines contacts between investors and innovative businesses, allowing startups to raise external capital from accredited sources efficiently. With their unified Venture Software Suite providing real-time insights for VC fund managers and Wellfound, a platform with startup jobs listings, AngelList supports all sides of the investment process.
Signal NFX
Signal NFX is a crowdsourced and community-driven network for founders, VCs, scouts and business angels. It helps startup founders find the right investors for their company, based on sector, stage and quality of investment. In turn, industry professionals can connect and offer advice to rising businesses.
Republic
Republic is a private investment platform, based in New York, with offices all around the globe. It connects investors with high-growth opportunities in startups, gaming, real estate, and crypto, offering services such as a retail investment platform, a blockchain advisory service, and a private capital division They curate a range of private investing options for both accredited and non-accredited investors, fostering connections between entrepreneurs and those seeking high-potential deals.
Dealflow.eu
Dealflow.eu is the leading European platform that connects investors and corporates with EU-funded innovations. Through their data platform, investors and corporates can easily discover the most promising startups, while accessing tailored investment opportunities and reliable due diligence. What’s unique about this website is that it only features EU-funded projects, which are taken from internal databases of the European Union. The platform also organizes matchmaking events, providing networking opportunities with innovators and fellow investors, as well as provides specialized venture-building services exclusively for EU-funded startups.
Startup Fountain
Startup Fountain serves as a bridge between early-stage venture capital funds, angel investors, and promising European startups, facilitating meaningful connections and introductions. It connects promising companies with investors all across the continent, looking for profitable deals.
Kaiku
Kaiku is a smart sourcing solution for early-stage venture funding. With a track record of supporting investors, venture funds, family offices, and corporate investors, Kaiku offers an automated origination and filtering process for accurate deal flow. Their technology enables investors to streamline prospect discovery and enjoy an automated sourcing process. It also features an AI-powered matchmaking service for personalized startup recommendations. With offices in the UK and an international team, Kaiku facilitates cross-border funding connections, offering startups international exposure.
Leapfounder
Leapfounder is a platform dedicated to Business Angels, where they can access a full suite of investment products as well as a big community of angel investors. With Leapfounder prospective angels can explore many startups and their in-depth data, connect with founders and innovators, access information about funding rounds as well as consult other investors. These features facilitate co-investment activities, simplify legal paperwork, book-keeping and deal-making.
Gust
Gust is a global SaaS platform that supports entrepreneurs, investors, and high-growth companies. With their online tools, entrepreneurs can easily start, manage, and raise funds for their businesses, while investors gain access to deal flow and relationship management. Gust is the largest community of entrepreneurs and early-stage investors, spanning 191 countries. They are the trusted platform for renowned angel investor federations and venture accelerators, successfully matching investors with the right deal opportunities.
Deal Tinder
Deal Tinder is a platform that makes deal-making easier and faster. It provides a complete solution for investors and startups to connect. Investors can access a pipeline-as-a-service, which boosts their deal sourcing and effectiveness and in turn, innovative companies can find the right investors much quicker, using smart algorithms.
Connectd
Connectd is a community network that connects entrepreneurs and startups with investors and NEDs to secure growth opportunities. They helps organizations and individuals connect directly, bypassing intermediaries. With this platform, investors receive strategic opportunities which meet their goals, whilst promising startups are paired with the right people who can help them to achieve their growth goals.
Fundr.ai
Fundr is a platform that automates, democratizes, and brings efficiency to seed investing. This end-to-end venture solution also includes a matchmaking feature - with AI-led technology, it helps investors analyze startups, close deals on the platform, and track companies with monthly reporting.
List of crowdfunding platforms
SeedBlink
SeedBlink is one of Europe's fastest-growing investing platforms for tech startups. Founded in 2020, it allows investors to co-invest across borders in a thoroughly curated list of European startups, together with a strong network of venture capital partners. Individual investors can enter with as little as €2,500. As the largest equity crowdfunding platform in Southeast Europe, SeedBlink democratizes startup investments and nurtures innovation in the region.
Crowd Cube
CrowdCube is a leading equity crowdfunding platform connecting entrepreneurs with potential investors across Europe. Their platform allows individuals to buy shares in high-growth private businesses, mostly founded by UK-based entrepreneurs but not only, with singular investment tickets starting from just £10/€10. This results in a streamlined process for owning shares in Europe's fastest-growing businesses, bypassing traditional investors and banks.
Wefunder
Wefunder is a US-based crowdfunding platform on a mission to make startup investing accessible to everyone. They allow private investors to match with the right startups and invest as little as $100 in promising projects. By expanding the investor pool, Wefunder ensures that great ideas receive the support they need to thrive, allowing startups to benefit from a passionate community of investors who genuinely want to see them succeed.
OurCrowd
OurCrowd is a leading global venture investing platform that empowers both individuals and institutions to invest in emerging companies. With a strong focus on Israel's vibrant startup ecosystem, OurCrowd carefully selects and invests in promising companies, providing its global network with exclusive opportunities to co-invest and contribute valuable connections and expertise. Through its rigorous due diligence process and extensive network, OurCrowd opens doors to investment rounds that are often inaccessible to new investors, ensuring a diverse and high-quality investment portfolio.
Seedrs
Seedrs is a UK-based, fast-growing equity crowdfunding platform, making it easy for anyone to invest in ambitious European businesses. It is dedicated to individual investors as well as business angels and venture capitalists, facilitating the sourcing and closure of deals. They handle all the legal documentation and due diligence, ensuring businesses are set up for success and investors get their fair share. They also offer a secondary market where shares can be bought and sold.
StartEngine
StartEngine is a US-based equity crowdfunding platform, founded in 2014. It allows everyone to invest in early-growth companies and startups, as well as in a variety of alternative assets and collectibles.
Equitynet
EquityNet is a financial services company that specializes in providing solutions in the fields of angel investors, investment banking, business funding, and venture capital. It provides access to thousands of approved, self-accredited investors, maintains many patents in the space and provides entrepreneurs and investors the most advanced technology for preparing and conducting fundraising campaigns.
Microventures
Microventures, a pioneering equity crowdfunding platform, welcomes both accredited and non-accredited investors to participate in its full-service investment bank offerings. With a diverse range of industries to choose from, Microventures specializes in consumer-facing businesses and provides opportunities in high-growth sectors such as cannabis and biotechnology.
Fundable
Fundable is a platform that offers both perks-based and equity crowdfunding. Thanks to its intuitive company profile builder, fundraising startups can easily convey their goals to prospective investors. It’s worth noting, however, that the site doesn’t facilitate transactions — all transactions must occur outside the platform.
LenderKit
LenderKit is a leading provider of custom crowdfunding platforms for both startups and established businesses. With their software expertise and development services, they help entrepreneurs launch prototypes, raise capital, and conduct A/B testing. This flexible crowdfunding software caters to local and international markets, allowing easy customization and integration with different regulatory frameworks.
Stay tuned for more VC tech stack entries — in the upcoming articles, we will cover all the essential platforms and pieces of software for the dealmaking and investing process.
If you want to gain more insights on the VC Tech Stack topic, make sure to check out our latest articles from the series:
- VC Tech Stack: The raise of data-driven VC funds
- VC Tech Stack: Top Tools For VC fund to streamline fund administration, reporting, portfolio management and investor relations
- VC Tech Stack: Virtual Data Rooms For VC Funds
- VC Tech Stack: Portfolio Management Tools
- VC Tech Stack: Productivity Tools for VC Funds
- VC Tech Stack: CRM Tools
Related Posts:
CEE SaaS Index 2023 (by Paweł Maj, Partner, Warsaw Equity Group & Ewa Chronowska, CEO, Vestbee)
CEE SaaS Index - September 2023 update (by Ewa Chronowska, CEO, Vestbee & Paweł Maj, Partner, Warsaw Equity Group)
CEE SaaS Index - June 2023 update (by Ewa Chronowska, CEO, Vestbee & Paweł Maj, Partner, Warsaw Equity Group)
