Funderbeam, a blockchain-based global marketplace for startup investments, announced that it has raised $2.6 million in a funding round from Draper Associates, Thomson Reuters, and IQ Capital.

According to the official release, the company’s previous investors including business angels and 3TS Capital Partners have also taken part in the round. Funderbeam has created a platform where startups and companies are funded and traded by using blockchain technology.

“Last year angels and VC’s invested in startups more than 110 billion dollars. Startups are the real growth companies — who used to list on stock markets. The problem with startup investments is that it has no liquidity. For this, Funderbeam has built a totally new exchange model, born global and built for startups from the beginning. We’ll grow with them. We bring liquidity back to investing,” Kaidi Ruusalepp, founder, and CEO of Funderbeam said.

The company is challenging the traditional capital markets that are full of inefficiency, intermediaries and costly for companies. Draper Associates is one of the leading members of the round.

“Over the past 10 years, stock markets have stopped working. They’re just not functioning anymore. Companies used to go public to gain access to growth capital, now they list for cashing out. Angels, VC’s, and private equity is gradually replacing the need, but the flow is “offline” on papers and there is no liquidity. It’s crazy that the sector investing into innovation is using processes from the last century. It was the time to take the startup industry to the blockchain century! And reprogram public markets,” Tim Draper, founder of Draper Associates said.

Founded in 2013, Funderbeam has launched successful three funding campaigns that are tradable in blockchain. The company is based in Tallinn, Estonia, but moved HQ to London a year ago. IQ Capital, a London-based VC has also joined the round, which will be a good connection for Funderbeam to move its activity more into the UK.