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InvestorHub Secures $4 Million in Extension Funding Round

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InvestorHub, a direct-to-investor marketing platform, has successfully raised $4 million in an extension funding round led by EVP, with follow-on investments from Archangel Ventures and Flying Fox Ventures. This funding round will bring the total amount raised in the Series A round to $9 million.

This latest capital raise marks the second funding initiative completed in less than two years since the company’s rebranding from Fresh Equities. InvestorHub previously raised $4 million in May 2023 and has since tripled its revenue over the following 13 months, attracting significant additional interest from investors.

The oversubscribed funding round includes approval for an additional $1 million post-raise, allowing for further strategic investments, resulting in a total capital injection of $5 million in addition to the initial $4 million. The capital will be utilized to expand InvestorHub’s market share in Australia and internationally. Currently, 4% of ASX companies, including Retail Food Group, utilize the InvestorHub platform, with the UK, representing approximately 10% of its client base, identified as a key growth market.

InvestorHub is in active discussions with several top 20 ASX and LSE companies and aims to leverage this capital to meet ambitious growth targets, including doubling year-on-year revenue. The funds will also support the development of new features, enhancing the company’s artificial intelligence and machine learning capabilities to improve product efficiency, enable predictive modeling, and deliver timely insights for companies and investors.

Ben Williamson, co-founder and co-CEO of InvestorHub, emphasized the importance of this capital raise in providing public companies the opportunity to engage with 99% of investors who have traditionally been overlooked.

He stated, “Historically, markets have favored intermediaries, creating a disconnect between companies and investors, leading to inequitable markets and neglect of retail investors. Technology is now enabling access to new investor types who significantly impact liquidity, share price movement, and capital raise outcomes.”

Williamson highlighted that larger individual shareholders outside a company’s top 20 are often disregarded, despite representing about 24% of the shareholder registry and contributing to 50% of all trades.

He added, “Furthermore, smaller retail investors, or ‘long tail’ investors, constitute approximately 75% of all shareholders and drive a quarter of daily trading volume. Effectively engaging this group can enhance their shareholding value by 139%.”

Williamson noted that technology will serve as a catalyst for overcoming the challenges and misconceptions surrounding shareholder engagement: “Until recently, time-poor executives struggled to find a viable and scalable method for meaningful communication with retail investors, contributing to the perception that being a listed company is a disadvantage.”

“Our vision is to equip companies with the tools to manage their investor relationships, optimizing both on-market and off-market performance, and making the experience of being a listed company an advantage,” he added.

Justin Lipman, Partner at EVP, commented on the investment: “Our continued commitment to InvestorHub reflects our strong belief in the company’s product capabilities and the quality of its team. Having tripled in size since our investment, we believe InvestorHub is emerging as one of Australia’s most promising software platforms.”

Williamson stated that while the market has a tendency to favor intermediaries, many are not bad actors, and InvestorHub actively seeks to collaborate with them to support the best interests of ASX executives and boards. He remarked, “This raise will enhance our ability to support our growing community of intermediaries and listed leaders, especially those outside the indices, empowering them to make better data-backed decisions that genuinely benefit their companies and shareholders.”

InvestorHub plans to continue disrupting the capital markets landscape over the next 6-12 months by expanding its market share in Australia and the UK and preparing for entry into broader international markets, including significant interest from companies listed on Canadian and North American exchanges. The company aims to integrate various industries within capital markets, including brokerage and investor relations, to provide companies with streamlined solutions for maximizing both on-market and off-market outcomes.

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