London-headquartered Foundy has raised £1.25m for its acquisition marketplace in a funding round led by Fuel Ventures.
Startup shareholders – including founders and employees – can anonymously list company equity on the Foundy platform to raise funds or seek full or secondary buyouts.
Foundy will use the capital to expand its teams across engineering, marketing and account management in preparation for international growth. Foundy declined to share which international markets it plans to move into.
The idea for Foundy stems from the experience of CEO JP Lewin founding and selling his e-mobillity marketplace Zwings.
“I found that the traditional startup acquisition process is painfully slow and complex for founders, buyers and investors. Foundy is on a mission to alleviate the current issues and modernise the process by providing access to every aspect of the deal lifecycle in an all-in-one platform,” said JP Lewin, founder and CEO, Foundy.
The Foundy platform requires startups to show stats and basic financial information. Future plans include Stripe integration to help validate finances.
Foundy claims it can carry out an acquisition in 30 to 90 days, compared to the average of nine months to 18 months.
The startup is looking to capitalise on an anticipated increase in acquisitions this year. Despite the downturn affecting both public and private markets, a report by Deloitte found that 92% of private equity investors and company executives anticipate acquisitions rising this year.
Mark Pearson, managing partner, Fuel Ventures, said: “The company will play a major role in the ecosystem as a whole because by helping startup shareholders more easily liquidate their shares via full and secondary buyouts it will in turn incentivise more and more people to both work and invest in startups.”
Fuel Ventures is an early-stage venture capital firm that has previously invested in payment service Volt, employee rewards marketplace Juno and online learning platform HowNow. In May the VC invested £2.4m into corporate mentoring platform Guider.