Hitmarker Launches Second Crowd Equity Campaign at $6.4M Pre-Money Valuation

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British esports and gaming job platform Hitmarker launched a crowd equity campaign on Crowdcube with a minimum funding target of £200K GBP ($266K USD) in exchange for a 4% stake in the company, which puts the organization’s pre-money valuation at £4.8M ($6.38M). In case the campaign overfunds, it is capped at a maximum of 12.04% equity sold.

The seed round crowd equity funding is Hitmarker’s second campaign following a successful pre-seed campaign in November of last year on the same platform. In its pre-seed round, the company raised £166 ($221K) from 380 investors, which the company used to double its headcount to 10 full-time staff. The first campaign reached the upper limit of 250% or £200K ($266K) of its funding goal in just seven days but was reduced to 207% or £166 ($221K) due to several overseas investors failing Crowdcube’s due diligence checks.

While the campaign was launched to the public on Nov. 27, it was available to existing investors a week early and raised 48% or £98K ($130K) of its target before its official launch. The campaign is scheduled to close on Dec. 19.

Hitmarker expects the funding to give it 18-24 months of runway to reach its break-even point and then sustained profitability thereafter. The investment proceeds will be used to hire an additional 10 staff over the next two years to facilitate further expansion through the roll-out of localized Hitmarker platforms in Brazil, Spain, Japan, China, and beyond.

According to Hitmarker’s business plan, the company, which had its first profitable quarter in Q3 2019 prompting the first raise on Crowdcube, works towards “growing revenue year-on-year and securing a significant trade acquisition exit well in excess of £20M ($26.6M) in the next five years.”

Investors are able to buy into the company with as little as five shares priced at £2.24 ($2.98). All participants of the crowd equity campaign will receive ordinary shares, which will be held by Crowdcube Nominees Ltd. and come with voting rights, pre-emption rights, and equal economic rights.

If the campaign is successful, Crowdcube investors will own between 11.96% to 20% of the company depending on the number of oversubscriptions. The only other current shareholders in the company are employees of Hitmarker.


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