New York, NY and Rotterdam, NL – February 05, 2015:
Monthly recurring revenue recognition to begin as of March 2015 with launch of
The Funding Network™
Symbid Corp. (OTCQB: SBID), a leading financial technology brand committed to building an online funding network based on investment crowdfunding and cloud-based monitoring technologies, today provided an update on the Company’s continued progress in the execution of its business strategy.
- Symbid Corp. will begin its vertical expansion into new products and services with the formal launch of the Company’s long-term partnership with financial advisory firm Credion in the first quarter of 2015. Symbid Corp. will receive monthly recurring revenues and transaction fees from Credion’s use of the Company’s online monitoring and deal-making tools during the month of February. The contract will see Symbid Corp. channel an expected $860 million worth of transaction volume in 2015 through The Funding Network™.
- The Company has begun communicating an upcoming repositioning of the Symbid brand towards The Funding Network™, the go-to platform for all types of SME funding. The re-launch of Symbid.com in early February will incorporate a new online infrastructure stretching across crowdfunding (equity and loans), angel investors, venture capital and institutional investors. The Company’s new brand identity is linked to the ongoing addition of new products and services and will be announced formally in March 2015.
- Management completed an initial closing of its Private Placement Offering raising $625,000 from a global investor base to support the growth of the Company’s online funding network. Symbid Corp. successfully raised the funds at a price 100% higher than the listed U.S. stock price, issuing 1,250,000 shares at $0.50.
Dear Fellow Shareholders,
The first quarter of 2015 sees the culmination of several crucial aspects of Symbid’s business development as we continue to innovate and expand our financial technology portfolio, adding long-term recurring revenue streams and creating value for our shareholders. The fact that we were able to raise capital at a significant premium to our stock price confirms that our investors recognize the true strategic value of The Funding Network™.
We are actively pursuing both vertical and horizontal growth of our online funding platform, as indicated by recent Symbid business highlights. The third quarter of 2014 saw exponential growth of 860% in the total capital invested via Symbid.com versus the same period last year. Additionally, we added 2,000 new users to our thriving community of 29,000 active investors, captured 10% of the entire Dutch seed capital market, and cemented our status as a global industry leader in investment crowdfunding. As of December 31, 2014, Symbid has facilitated over $7.3 million in funding to innovative start-ups and small businesses.
The continued exponential growth of our core investment crowdfunding business is the foundation on which The Funding Network™ is being built. This new, forward-thinking brand identity is rooted in our market positioning at the heart of financial technology and reinforces the introduction of several new products and services starting this quarter. The Funding Network™ provides small businesses direct access to all forms of finance, while offering investors full transparency on the potential risks and returns of their portfolio. Symbid is becoming the go-to platform for SME funding, connecting new and traditional sources of finance in one integrated network built around cutting-edge technology.
The upcoming launch of The Funding Network™ in cooperation with financial advisory firm Credion will see Symbid facilitate both B2C and B2B deals with an expected transaction volume worth $860 million in 2015. This partnership means we are making concrete progress towards a tiered business model producing monthly recurring revenues on top of our core crowdfunding revenues starting in March 2015. Credion’s evergreen subscription to The Funding Network™ represents the validation and monetization of our financial technology portfolio, demonstrating Symbid’s commitment to ensuring long-term value for shareholders.
Meanwhile, the introduction of a loan product in the second quarter of 2015 will mark our entry into the rapidly expanding peer-to-peer lending market. With Symbid earning 5% on every $1 loaned via our platform, this product has significant revenue-generating potential and is a major boost to our core transaction-based crowdfunding model. This is another crucial step forward in securing the long-term future of Symbid as we seek to deliver on our first mover advantage in online funding.
In terms of horizontal expansion, we are now initiating the first stage of a European roll-out with the launch of Symbid Italy in partnership with Banca Sella, a 129-year-old renowned banking institution. This joint venture is set to generate 6% commission rates on all funding and will validate our B2C business model. We expect the venture to yield further monthly recurring revenues with the incorporation of The Funding Network™ and its online monitoring and deal-making technology. Symbid Italy represents a key milestone in our growth strategy as we make steps to become the first Europe-wide online (crowd)funding platform with further expansions in 2015.
Our Company remains committed to revolutionizing the way SMEs receive funding as we lead the transition from crowdfunding to online funding. The addition of monthly recurring revenue streams with our cloud-based monitoring and deal-making technology does not only secure Symbid’s future as a leader in financial technology innovation, but signals the birth of The Funding Network™. As of February 2015, we are no longer one of the world’s first investment crowdfunding platforms — we are the go-to platform for small businesses in search of funding.
Thank you for your continued participation in Symbid — I look forward to speaking with you soon.
Korstiaan Zandvliet, co-founder and CEO of Symbid Corp.