Crowd-funding platform OurCrowd raises over $20m

The crowd-funding platform has invested in 26 portfolio companies including over $1 million in seven start-ups.

Israel's equity crowd-funding platform for accredited investors, OurCrowd announced that it has raised over $20 million for its 26 portfolio companies.

OurCrowd CEO Jon Medved said, "With OurCrowd reaching this funding milestone, we have solidly positioned ourselves as a leading player in the growing equity crowd-funding revolution. Our trailblazing platform has enabled accredited angel investors worldwide to invest in promising companies alongside top notch VCs, such as Canaan, JVP, Accel, Index and Khosla Ventures."

Medved added, "What truly sets us apart from other platforms is that we are focused not just on crowd-funding but on crowd-building for our portfolio companies. Funding is just the first level of engagement with the crowd. OurCrowd assigns experienced mentors to work with each of our companies, often taking board seats, and we play an active role in helping our companies grow. We encourage our investors to pitch in by helping the companies, and this has borne fruit with dozens of introductions and strategic connections being made as a result of the crowds help."

Among the companies that OurCrowd has invested in are parking app Parko, mobile communications platform Zula, organic products e-commerce site Abe's Market Ltd., website protection company Fireblade (formerly SiteBlackBox), and renewable energy developer LucidEnergy Inc.

OurCrowd general partner Elan Zivotofsky said, "We are most proud of the fact that we are raising far more than symbolic amounts of capital for our companies. Many view equity crowd-funding as a curiosity or a way to raise small amounts of cash. The fact that we have now completed seven deals in excess of $1 million each via our platform demonstrates that this model works and can be effectively used for significant capital raises."

OurCrowd has already launched 5 follow-on funding rounds for various portfolio companies, to provide these companies with additional capital to expand their operations. Medved said, "We see not only that we can raise significant amounts of initial funding on our platform, but also that our investors are starting to re-invest in our deals. Most of these follow-on rounds are led by external investors at a significant increase to our initial investment valuation round even though our initial funding closed only months ago."

Published by Globes [online], Israel business news - - on September 10, 2013

Copyright of Globes Publisher Itonut (1983) Ltd. 2013

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