Fresh Equities rebrands to InvestorHub as it secures a $4 million raise in just two months off the back of rapid growth
Fresh Equities has rebranded to InvestorHub and has secured $4 million to expand its efforts in revolutionising the way in which public companies connect with investors.
The round was led by EVP, and was closed in two months from the first meeting with the firm in spite of shaky market conditions for tech companies.
The funds will be used to double InvestorHub’s revenue in 2023 and canvas expansion into other markets such as the UK, Singapore, Canada and the US.
The software provides detailed, data-driven insights on a company’s shareholder base, allows it to communicate to them more effectively, and engage with potential investors. On average, companies on InvestorHub reach and engage 20-times more investors than through traditional investor relations channels alone.
In less than 12 months of operation, InvestorHub has helped its clients, which represent more than $7.5bn in market cap, reach and engage more than 45,000 investors per month, and raise over $77m.
To-date, InvestorHub companies that have raised capital have been less susceptible to the common downsides of fundraising, such as heavy shareholder dilution, post-raise selloffs due to arbitrage, and heavy fundraising incentives.
Since launching as Fresh Amplify in July last year, InvestorHub has grown at a CMGR of 31.7%. The business already works with 40 companies that range from $2m to $6bn in market cap, these include: Recce Pharmaceuticals, Race Oncology, Altech Batteries,and 4DS.
Founders Ben Williamson and Rhys Davis, created the business after seeing the disconnect between companies and their shareholders while helping them fundraise with Fresh Equities.
CEO and co-founder of InvestorHub, Ben Williamson (pictured) said, “Our growth is testament to the fact that listed companies find it very difficult — and expensive — to communicate with everyone outside of their top 20 shareholders and institutions. There are ASX companies who are building complex stitches of multiple databases and communications platforms just to achieve a fraction of what InvestorHub customers are achieving via much simpler means.”
“The new InvestorHub brand better communicates exactly what we do — help public companies bridge the gap with investors. The benefits of improved investor engagement are clear. In a year of operation, we’ve seen multiple InvestorHub clients use the platform to stop potentially catastrophic selloffs, companies have been able to harvest their increased shareholder demand to run some of their best raises ever, and we’ve helped companies save hundreds of thousands in unnecessary brokerage fees. One company saved an estimated $120,000 in broker fees on one placement alone.”
“Retail investors account for up to 80% of the daily trades of any given company, so the fact that issuers don’t have the means of directly communicating with them is an insane imbalance in the marketplace — one that InvestorHub is correcting.”
Commenting on the platform, Managing Director of Brookside Energy, David Prentice said, InvestorHub is our most efficient that optomises the way we engage all our shareholders. The platform alerted us to a downgrading shareholder, which enabled us to reach out directly and have a conversation. As a result, that investor stopped selling and resumed buying into our company.
With regards to the investment, Justin Lipman, Partner at EVP said, “Everyone at EVP is excited to be leading the current round and backing the InvestorHub team. We’ve been particularly impressed by the quality of the team, and attracted to the consistent feedback we heard from the market around the quality of the solution. Any time a product gains market share this quickly within a vertical we take note; and the InvestorHub offering seems to be sweeping the listed space within Australia.”
“As our sole area of focus is B2B SaaS, we are drawn towards software products that are deeply ingrained in the workflow of its customer base, and InvestorHub’s software provides a clear example of this. The new funding, despite the current macro environment, will enable the team to continue its R&D investments in the space, look to overseas expansion and increase the size of its go-to-market team.”
Managing Director of Brookside Energy, David Prentice said, “InvestorHub is our most efficient that optomises the way we engage all our shareholders. The platform alerted us to a downgrading shareholder, which enabled us to reach out directly and have a conversation. As a result, that investor stopped selling and resumed buying into our company.
