French venture capital firm Founders Future has made a significant move by acquiring Sowefund, an equity crowdfunding marketplace. The terms of the deal have not been disclosed, but Sowefund, which currently has around 20 employees, has been profitable since 2022. This acquisition adds a new dimension to Founders Future’s business as it now operates both as a traditional VC firm and a crowdfunding platform.
Key Takeaway
French VC firm Founders Future has acquired Sowefund, an equity crowdfunding platform, to tap into the growing interest from a new generation of investors looking for transparency and opportunities in both public and private companies. This move allows Founders Future to combine its VC business with a retail crowdfunding platform, expanding financing options for startups and providing retail investors with access to diverse investment opportunities.
The Synergy of Two Complementary Businesses
Founders Future’s core activity involves raising funds from limited partners, including professional investors and family offices, and investing in promising startups. With the addition of Sowefund, the company can now connect retail investors with startups looking to raise funds from their community or from personal finance experts.
Despite this acquisition, Founders Future and Sowefund will continue to operate independently, with no immediate plans for synergies between the two. This move reflects the changing investment landscape and the growing interest from a new generation of investors who want transparency and a more active role in their investments.
Expanding Crowdfunding Opportunities
By bringing their expertise to Sowefund, Founders Future aims to enhance the professionalism of the crowdfunding platform. The company plans to invest millions to expand Sowefund’s team and solidify its position as the leading platform for co-investment with professionals.
While Sowefund has already facilitated 103 crowdfunding campaigns since its inception in 2014, the company aspires to offer investment opportunities in funds such as venture capital and impact funds in the future, pending regulatory changes.
Tapping into a Large Investment Pool
One of the key motivations behind this acquisition is the enormous potential among individual investors who want to invest in companies they know and use, or have a positive sentiment towards. Equity crowdfunding provides an alternative or complementary fundraising avenue for companies at a time when traditional financing methods may be challenging.
