SquareBook, the auction technology platform for equity capital raises, has surpassed its crowdfunding target by acquiring 101% (£507,320) of its £500,000 goal from 153 investors through Seedrs. With two days remaining in the campaign, the Edinburgh-based company has demonstrated strong investor interest. SquareBook operates within the Finance & Payments sectors, specifically in the Digital Mixed B2B/B2C space. Established in January 2017, the firm offers a variety of investment features, including convertible types, a 20% discount, tax relief, and EIS benefits.
The key highlights of SquareBook’s business include its digital auction platform for equity raises, which aims to bring fairness and transparency to price discovery. The company operates with eight signed clients, two advisor partners, and more prospects in the pipeline. Notably, SquareBook is authorized by the Financial Conduct Authority (FCA) and is built within the FCA innovation hub.
One of the main drivers behind SquareBook’s mission is to revolutionize the manual processes that currently dominate capital raises. With its digital toolkit and wide investor base, SquareBook seeks to empower issuers and advisors by providing a seamless end-to-end solution from private deals to IPOs and secondaries. By utilizing rule-based auctions, companies gain control over share pricing, marking an innovative step in an industry that has seen little change for decades.
In terms of monetization, SquareBook has two key revenue streams: monthly subscription fees and transaction fees. The company charges a monthly software-as-a-service fee of £1,000 to each company using the platform. Additionally, when a deal is executed through SquareBook, the company pays a transaction fee typically amounting to 1% of the capital raised. This lower fee structure distinguishes SquareBook from traditional investment banks, which typically charge fees ranging from 4.1% to 7% for IPOs. Considering that the average global IPO executed in 2021 had a value of $227 million, SquareBook’s platform presents a more cost-effective alternative.
Overall, SquareBook has positioned itself as a disruptive force in the equity capital raising market, offering a digital solution that brings efficiency, transparency, and control to companies seeking to raise funds. With the successful crowdfunding campaign and its innovative platform, SquareBook is well-positioned for growth in a market that has long awaited meaningful change.
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