Singapore Exchange-backed Asian Gateway Investments will acquire a 10 per cent stake in online capital raising platform CapBridge Platform which has also raised a $2.96 million (SGD4 million) in new money from early stage investors including US-based Timothy Draper.
The Capbridge Holdings owned platform will use the financing round for building multiple functions for companies and investors to tap on, engage with, and exchange content between each other, the company said in an announcement on Monday.
The platform helps companies to connect with smart money investors and manage strategic financing campaigns to raise growth capital. Institutional and accredited investors can participate in the growth funding of mid-to-late stage companies through an online interface that the platform provides.
The recent partnership between Singapore Exchange and CapBridge follows the former’s continuous association with the platform. Earlier in 2015, the exchange had provided support to the platform through a S$1.5 million grant to Clearbridge Accelrator Pte Ltd (now 1Exchange) over three years.
Earlier this year, CapBridge said, it was launching a $100 million pre-IPO (initial public offering) fund in collaboration with Gordian Capital in bid to link startups with institutional investors, a sub-trust fund under the CapBridge Investment Trust (CIT).
In one of the recent funding via CapBridge, US-based start-up Nautilus Data Technologies raised $25 million in a Series C preferred stock funding exercise via the platform last month. In a round led by a Palo Alto-based family office, the fundraising exercise saw strong participation from investors in the US, Europe, and Singapore. Investors included the Ireland Strategic Investment Fund and a unit of Singapore’s Keppel Telecommunications & Transportation Ltd.
“CapBridge addresses the funding challenges growth companies face, and adds to the vibrancy of the capital markets here in Singapore. SGX is committed to supporting the development of the CapBridge online platform, and this partnership syncs well with our broader drive to ensure that every company, at each stage of their growth, has access to capital that is efficient, cost-effective and sustainable,” said Mohamed Nasser Ismail, Senior Vice President and Head of Capital Market Development and Equity Capital Market (SME) at SGX.
He added that SGX intends to leverage on CapBridge’s experience and together explore the feasibility of building on their platform to develop a fully integrated private market in Singapore.
Formed in 2015 in partnership with the Singapore Exchange, CapBridge is regulated by the Monetary Authority of Singapore and holds a Capital Markets Services Licence that allows it to deal with securities. It is a carve-out from 1Exchange (formerly of Clearbridge Accelerator, Singapore) and in partnership with Healthios Capital Markets(US).