Funderbeam, a Tallinn-based fintech startup that connects ambitious companies with smart capital and creates unique liquidity for investors, has secured $40m in an investment round led by VentureWave Group. As part of the deal, VentureWave will take a strategic majority stake in Funderbeam and contribute its capital, global networks, leadership, and Vestiver platform capabilities. The round also included co-investors such as Mistletoe, Draper Associates, and Funderbeam founder Kaidi Ruusalepp.
The partnership will enable Funderbeam to serve institutional investors and angel networks globally, allowing them to access venture deals and secondaries with a strong impact methodology and appraisal process. With its unique platform, Funderbeam has created a transparent, accessible, and fair stock exchange. The company’s aim is to shape the future of venture markets, disrupting traditional venture markets.
VentureWave Group is an Irish-based venture private equity group committed to impact investing and supporting high-impact entrepreneurs. Following the completion of the transaction, the group will target the entire life cycle of global venture investments and secondaries, from early-stage angel funding to pre-IPO secondaries. The partnership will allow the group to scale Funderbeam’s ground-breaking technology across venture assets and enter the US market through Vestiver, the institutional venture platform.
“This transaction creates a powerful platform to fast forward Funderbeam’s vision which is to serve venture investments across borders and create a unique secondary market for private assets. The timing of the transaction couldn’t be better – we are strong at a time when the market is ready for our solution,” said Kaidi Ruusalepp, founder and CEO of Funderbeam.
“VentureWave’s investment in Funderbeam is a game-changer for the industry, shaping the future of venture markets and enabling access to global venture deals and secondaries. Together, we have the necessary assets, technology, and capital to take on the entire venture investment life cycle. This represents a transformative moment to put impact at the centre of the investment industry,” said Alan Foy, VentureWave Chairman.
“Private companies from venture investments have a long history of difficult liquidity. Our portfolio company, Funderbeam together with VentureWave allow venture backed start-ups to be liquid. This is a major breakthrough and the new liquidity will allow for GPs and LPs to more easily trade otherwise illiquid positions,” said Tim Draper, founder of Draper Associates.
“Mistletoe is supporting impact companies. Companies that introduce change for the better in a way we live and do business. Funderbeam has been a pioneer in changing the way that the venture market works – democratising investments in startups and enabling exits when needed. Solution that puts founders first in their mission. It takes endurance and resilience to introduce novel models in the financial sector and we are very happy that the other impact investor, VentureWave, is joining in,” said Taizo Son, founder of Mistletoe.
