B2B Payments

Crowd Backs Trade Worker FinServ Startup

Crowdfunding has exploded. According to statistics from Massolution published earlier this year, 2014 saw $16.2 billion in funds raised through crowdfunding platforms, a 167 percent increase from the year prior.

It’s not just individuals with the next big idea that are getting crowdfunded, either. Businesses are turning to the tactic to help fund their own ventures. One of these businesses is Powered Now, a digital platform that helps members of the trade industry manage their finances, invoices, billings and payments in a single app. Employees like painters, decorators and other trade workers can access their professional finances and manage documents through the platform.

And the crowd seems to like it. According to reports by Startups published this week, Powered Now has secured more than $870,000 in its second round of fundraising. But the support isn’t coming from venture capitalists, per se. Instead, Powered Now raised the funds through crowdfunding platform Crowdcube. It’s the second time the company turned to the site to find investors.

[bctt tweet=” Powered Now has secured more than $870,000 through crowdfunding.”]

The funding follows a nearly $1 million angel investment round in the last year, too.

The company said that the quality of the backers on Crowdcube has been particularly high.

“Once again, the crowd has shown huge faith and enthusiasm in getting behind our business to help us grow,” said Powered Now Cofounder Benjamin Dyer. “And it’s not just about the money. We have seen increasing numbers of people with strong trade backgrounds invest. These provide an invaluable source of ideas and advice for the business.”

According to reports, 353 individuals participated in the fundraising, with one providing more than $75,000 in a single investment. The backers now account for a 16.5 percent share of the startup.

Reports said the funds will be used to develop a more robust software and for marketing purposes.

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