Seedrs

  • FoundedJuly 2012
  • HeadquartersUnited Kingdom
  • FundingBetween $10 - $25 million
  • Sector-FocusGeneralist
  • Stage-FocusSeed, Early
  • SecuritiesEquity

Snapshot

Seedrs is a UK-based equity crowdfunding platform. Founded in late 2009, it opened its marketplace in July 2012 and has since raised ~$8.8 Million for companies across 56 successful campaigns.

The Seedrs’ community is 29,000+ users strong, and full of diversity. Issuers and investors from all generations have signed up, with listed entrepreneurs ranging in age from  22 to 58; and investors 18 to 94.

Seedrs lists its core objectives as follows:

  1. Transform the startup world by giving entrepreneurs a platform to leverage their friends, family and existing base of supporters to collectively raise investment. These investors represent a large new pool of capital and can act as mentors, supporters and advocates for these young companies.
  2. Give ordinary people the opportunity to invest in the startups they choose to:
    1. Get exposure to the returns from a portfolio of startup investments;
    2. Enjoy the excitement of being part of dynamic, high-growth businesses; and
    3. Help friends, family and community get their business ideas off the ground.

Pan-European

In November 2013 Seedrs went Pan-European and began supporting issuers and investors in the Economic Union, European Economic Area, and Switzerland (32 countries). It facilitates these cross-border transactions by setting up UK-based vehicles for each international investment.

Seedrs listed its first non UK-based company, GlassUp, a hardware company domiciled in Italy, in early 2014.

Nominee Structure

Seedrs supports a “nominee structure,” opposed to a direct investment model. In its nominee structure, individuals do not invest directly in the company; rather they invest in a pooled fund that is managed by Seedrs (the “nominee”) Seedrs does allow for direct investment, but an agreement must be separately made between the issuer and investor. More on its nominee structure from Seedrs:

The nominee structure allows us [Seedrs] to manage the investment for you while still giving you the full economic interest in the business. By using a nominee structure, you get the benefits of being a shareholder – financial returns, the opportunity to vote and keeping informed about the business’s progress – and the startups get the benefits of your investment without either of you having to face the burdens of a direct shareholding.

Deal Flow

Any type of business can seek capital through Seedrs. However, it only approves startups it believes will be of interest to its members; and it vets every issuer to ensure their campaign is “fair, clear and not misleading.”

Seedrs initially focused on idea-stage, pre-revenue technology startups. While it’s maintained its focus on startups—early-stage, growing businesses—it now supports a large number of industries and has raised capital for all sorts of issuers, from film production companies to restaurants to managed funds.

On average: successful campaigns have raised ~$150,000, sold 13% of their company, and raised at a post-money valuation of roughly $1.1 million. But given the dispersion of raise types and sizes the averages can be deceiving. For instance, Seedrs’ smallest successful campaign, Spherical Systems, raised $15k at a valuation of around $100k, while it’s largest, its own campaign, raised $4.1M at a $12.1M valuation.

In late 2013 Seedrs also began offering access to managed funds. Glentham Capital Limited raised ~$240,000 to provide financing for selected Hollywood films and was the first such fund to raise capital on Seedrs.

Fee Structure

For Investors

  • Carried Interest: 7.5%

For Issuers

  • Success Fee: 7.5% of total funds raised

Executive Team

Jeff Lynn

Chief Executive Officer

Jeff is a qualified lawyer with extensive experience in the worlds of corporate transactions and early-stage businesses. He began his career practicing corporate law with Sullivan & Cromwell LLP in New York and London and later served as co-chairman of the investment committee of a UK seed investment fund. He also serves as the Chairman of The Coalition for a Digital Economy (Coadec) and has acted as a strategic adviser to several startups. Jeff holds an MBA and a BCL (advanced law degree) from the University of Oxford, a JD from the University of Virginia and a BA from the University of Pennsylvania.

Carlos Silva

President and Chief Operating Officer

Carlos is an IT development and security expert with nearly ten years of industry experience, most of them in a leading role. Most recently he served as Head of New Product Development at Sysvalue, an innovative information systems security consulting firm based in Lisbon, and he has also worked as an information security consultant to a range of leading European financial institutions. Carlos holds an MBA from the University of Oxford and a Masters in Computer Engineering from Instituto Superior Técnico, the leading Portuguese engineering university.

Social

April 18, 2014

The Seedrs crowdfunding platform for investing in business startups offers a 5% referral bonus, avai

January 30, 2014

Press Release AFT Holdings, Inc. announced today its inv

January 22, 2014

Announcement from Seedrs: Hi, I’m Peter Thomson the new Chief Marketing Officer fo

January 6, 2014

Modena, Italy based company GlassUp may claim the first non-UK listing on equity crowdfunding platform Seedrs. The company is seeking to raise £100,000 for 7.69% equity in the tech company. Pre-money valuation of GlassUp is posted at £1,200,390. The co …

November 25, 2013

Seedrs will this week become the first crowdfunding platform for equity investments to allow cross-border fundraising rounds across the EU. The London-based start-up hopes to finance the expansion by reaching out to potential investors through its own …

October 25, 2013

Having to set up a bank transfer after you’ve made an investment into one of your favourite startups can be a pain. That’s why we’ve spent the last few months looking for alternatives. When it comes to our investors’ money and user experience with the …

September 30, 2013

Sites like Crowdcube and Seedrs allow people like you and me to look at business plans online and decide which one we want to invest in. Like the fire-breathers of Dragons’ Den, we can solemnly declare to our computer screen, ‘And for that reason, I’m …

July 31, 2013

Equity Crowdfunding Campaign Launched on Seedrs by Renowned Fund Managager Nicola Horlick.  Seeks £150,000 for 10% Equity in New Venture. Nicola Horlick, one of Britain’s most successful and well-regarded fund managers, has launched a campaign on equit …

July 23, 2013

Equity crowdfunding platform Seedrs has called in Albion Drive to strengthen its connections with entrepreneurs and start-ups seeking investment. Albion will raise awareness of the UK-based company in the business and tech press. It will work on a reta …

June 10, 2013

Crowd-funding could hardly be more of-the-moment: using the web and social media to pitch your new business to the masses, sidestepping the traditional route of raising money from the bank or wealthy individuals. However, Jeff Lynn, co-founder and chie …

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