For Business Owners
Seedmatch is a German equity crowdfunding platform
This independent review has been written for startups & growing companies considering using Seedmatch to raise money with equity crowdfunding.
- What Is Equity Crowdfunding?
- Best Equity Crowdfunding Sites From Around The World
- How To Crowdfund A Business Through Equity Crowdfunding – Step-By-Step
In this Seedmatch review, you will learn about:
- Seedmatch’s Attitude To Curation
- Which Companies Can Use Seedmatch
- How Seedmatch Helps Business Owners
- What Is Unique / Different About Seedmatch
- How To Raise Money With Seedmatch
Platform Website: seedmatch.de
Seedmatch’s Attitude To Curation:
Seedmatch are very careful about which companies they choose to work with. This makes it vital for would-be fundraisers to understand their curation process.
All-in-all, Seedmatch are looking for companies which they believe have favorable prospects.
- The application process starts with the company submitting a pitch deck.
- If they pass the initial review, the Seedmatch team will then get in touch to get more information in order to analyse the company further.
- Next, Seedmatch will ask to meet with the company’s team. At this point, Seedmatch are looking at the company’s people and asking: “do they seem committed to the process?” and “are they open to guidance on how to crowdfund?”
Through this process, Seedmatch screen out the vast majority of the companies which would like to list with them – to the point that only around 1% of those which apply ultimately get to go live.
Learn How To Succeed With Equity Crowdfunding
Equity crowdfunding offers amazing potential for startups and growing companies, but it is also a very steep learning curve.
In this step-by-step book, you will hear from the world’s leading platforms and from successful past crowdfunders from around the globe, with all their tips and tricks.
Learn how they did it, and how you can do the same.
Which Companies Can Use Seedmatch:
While Seedmatch claim not to have a specific area of sector focus, they do have certain sectors which tend to gain more favor with their investor audience than others. In particular:
- Food & beverage companies
- Social impact companies
Seedmatch see their sweet spot in between seed stage and the growth stage.
They are looking for companies past the “idea” stage. There needs to already be a proven product with existing customers and revenues, rather than be a true startup needing money to finance that product development in the first place.
Seedmatch are a purely German-language platform. As a result, their investor audience are overwhelmingly German-speakers. Companies should consider using Seedmatch if they are from:
- Germany (Deutschland)
- Austria (Österreich)
- Switzerland (Schweiz)
Raise Size Restrictions:
Companies should be raising a minimum of €300,000, up to a maximum of €2.5 million. The minimum is a commercially-set minimum (it is not worth anyone’s time to help companies raise less than this), while the maximum is legally-imposed as the most which can be raised under German equity crowdfunding regulations.
Individual investors need to invest at least €250 per offer. This minimum is high enough to ensure that people are treating their contribution seriously (it is not a “throwaway” amount of money), while also being a small enough minimum to be reasonably affordable for a wide range of investors – useful for companies seeking to achieve a broad shareholder spread (and all the associated marketing benefits that come along with it).
Take The Quiz – Are You Ready For Equity Crowdfunding?
Equity crowdfunding can raise 6 – 7 figures of investment for startups & growing companies, without banks or VC.
But is your company ready to launch?
This short multi-choice assessment has been created to give an indication of whether your company is fit for funding.
All answers are kept completely confidential.
How Seedmatch Helps Business Owners:
Because most startups & growing companies listing on an equity crowdfunding platform are doing it for the very first time, it often falls on the platform to hand-hold the company through the process. As part of this, they provide feedback to business owners as they prepare the campaign page collateral, including:
- Social media
However, Seedmatch point out: “We don’t write the documents for them. It’s guidance, not a done-for-you service”.
Additionally, Seedmatch provide standardized legal contracts (to cut down on lawyer fees). Seedmatch’s parent company can also assist with preparing the financial statements and forecasts, if the company raising funds needs it.
What Is Unique / Different About Seedmatch?
Seedmatch’s selection process is more rigorous than other German platforms. While on the one hand this means that it is harder to get approved in the first place, it also means that the companies that *do* get listed on Seedmatch are more likely to succeed. Investors know that Seedmatch is highly selective about the companies they host, and this leads to greater trust from their database.
The stricter curation process also means Seedmatch are able to dedicate more resources to the handful of companies they work with. The startups that work with Seedmatch really feel they were given individualized attention, because they were not just one of many. Companies are cared-for and nurtured on Seedmatch.
How To Raise Money With Seedmatch:
So, how do you get to be a member of the 1% of companies that get to list on Seedmatch?
First, there needs to be a real product / service solving a real problem. If you can show the Seedmatch team you have a great business, you will be in great shape.
Beyond that, a company can increase its chances of getting funded by being honest & clear about what they want to achieve. A lot of founders don’t know *why* they are raising money – or if they do, they are unable to clearly articulate it. Founders would therefore be well-advised to prepare a short 30 – 50 word “elevator pitch” before approaching Seedmatch, outlining why raising capital is so important to them.
Seedmatch are looking for founders who are willing to get out there and do the promotional groundwork. While companies will get featured across the various Seedmatch marketing channels (e-mail, social media, etc), they also need to show a willingness to activate their own community and bring them to the offer as well.
The final piece of advice is to learn from the best crowdfunding case studies so that you can replicate their success. Other companies have done crowdfunding before – you don’t need to learn from scratch. Absorb as much information as possible so that you are prepared to crowdfund!
You’ll learn how to choose the right platform, build a crowd, and raise game-changing money.
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