For Business Owners
Seedrs is a UK & European equity crowdfunding platform
This independent review has been written for startups & growing companies who are considering using Seedrs 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 Seedrs review, you will learn about:
- Seedrs’s Attitude To Curation
- Which Companies Can Use Seedrs
- How Seedrs Helps Business Owners
- What Is Unique / Different About Seedrs
- Advice – How To Raise Money Through Seedrs
Platform Website: www.seedrs.com
Seedrs Attitude To Curation:
Seedrs undertake a very careful curation process with all the startups & growing companies that wish to list on their site. Not every company who applies will get the chance to “go live”.
This curation is to help further solidify Seedrs’ reputation as one of the go-to platforms for investors. The curation undertaken at the beginning also helps explain their high success rate for campaigns which *do* ultimately get to go live.
From Seedr’s point of view, curation is about being upfront with the companies that come through the door. They don’t want to lead founders down a path which they believe will ultimately be unsuccessful. If a company is not ready for equity crowdfunding, Seedrs may instead direct the company to other funding avenues – for example, Seedrs have an official partnership with Kickstarter.
Further, if a company gets a “no”, from Seedrs, it does not mean “never”. Perhaps the commany needs to do more community building – in which case, it might be a case of “come back in 6 months time and let’s talk again”.
More specifically, here is how Seedrs decide which companies they will list on their platform: They will look into the company’s website quality, brand identity, user & customer engagement, experience of founders and management team, products & services, market, customer base and demographics, fundraising needs, offering terms, and financial health.
Learn How To Succeed With Equity Crowdfunding
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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.
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Which Companies Can Use Seedrs:
Seedrs claim to cover a broad spectrum of companies wishing to fundraise. As one of the world’s largest equity crowdfunding platforms, it is true that Seedrs have helped a very wide variety of companies over the years.
However, they say that innovative companies with a growth-focus tend to have the greatest level of success. You should have plans to expand and provide meaningful returns to investors. So, it is more about your company culture and business model, than the exact category of product or service that you offer.
Seedrs are very clear that they do not fund “idea-stage” businesses. There needs to be some traction. The kind of traction depends on the business in question – but for example, if an insurance company were wanting to fund on Seedrs, they would need to already have regulatory approval. Still, many of Seedrs listings are relatively early-stage.
Later-stage companies are also welcome – those looking for expansion / growth capital, which have already raised external funding in the past.
Seedrs is open to businesses based in the United Kingdom, European Union, European Economic Area, and Switzerland. If your company is based outside of these European countries, you will not be able to raise investment through them.
Investors can be accepted from all over the world, with the *exception* of the United States, China and Japan, and certain embargoed countries (for example, North Korea).
Raise Size Restrictions:
Seedrs state that companies need to be raising at least €50,000 / £50,000 to be considered. Below this level, the amount of capital is too low to justify the work that goes into an equity crowdfunding campaign. However, that 50k level is more of a bare minimum, and the real “sweet spot” is in helping companies raise at least €100,000 / £100,000.
Non-prospectus equity crowdfunding offers can raise up to €8 million, and Seedrs are comfortable helping companies to raise capital anywhere up to this level.
Investors can invest as little as £10 in each offer – one of the lowest minimum investment thresholds in the world. This is particularly useful for campaigns wanting to use equity crowdfunding to build / deepen relationships with a large number of people (e.g. customers). It allows companies to get a very widely distributed shareholder base.
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 Seedrs Helps Business Owners:
Seedrs see their role as providing value-added capital. Any company that ends up working with Seedrs can expect coaching from their in-house team, help with their social media strategy, assistance on how to talk to the press, and will work with their associates to get their investment pitch on point.
One thing that Seedrs does *not* advise on is valuation. They see their role as being a place where companies and investors can meet, and do not want to tell startups which valuation they can go out to the market with.
What Is Unique / Different About Seedrs?
The secondary market of Seedrs is one-of-a kind. Most equity crowdfunding platforms help facilitate new capital raises, but don’t help shareholders buy and sell afterwards. Seedrs is different. Through this secondary market, investors have the possibility of achieving liquidity even before the company has had an “exit event” (such as a sale or initial public offering). Meanwhile, companies get to refresh their base of shareholder advocates, to make sure that those on their share register are there because they *want* to be there, as engaged crowd investors.
Seedrs’ life-cycle model is also quite different to other platforms. They are proud to provide their funded companies with ongoing support. Seedrs’ team can help with introductions to useful partners, advice on how to spend the crowdfunded money (after it has been raised), as well as marketing, PR… and of course, by helping to facilitate future fundraisings.
Finally, Seedrs are one of the few equity crowdfunding platforms to have a presence in multiple countries. With their primary offices in London and Lisbon, plus people on the ground in Amsterdam and Berlin, they have wide coverage across Europe, rather than just focusing on a single country. This is a highly valuable feature for companies whose “crowd” is widely geographically dispersed.
Advice – How To Raise Money Through Seedrs:
For the best possible chance of funding on Seedrs, companies should have a clear reason for equity crowdfunding. Equity crowdfunding is about more than just the money – it’s about community building and deepening engagement with a crowd as well. Founders will do well if they can approach with a strong rationale for doing equity crowdfunding instead of other ways of growing / funding their business. Ask yourself – what do you want to get out of the raise, from a strategic point of view?
Also, having an engaged community is a must. While Seedrs has their own investor database, companies need to be able to bring their own crowd to the offer as well. When your existing network (family, friends, customers, suppliers) invests in your offer, it provides the kind of social proof that will encourage strangers to follow along too.
Finally, Seedrs wants to work with founders who are willing to commit to the work involved. People consistently underestimate the amount of time it takes to pull of an equity crowdfunding raise, which is why arming yourself with the right knowledge is so vital. Equity crowdfunding is not a smash-and-grab – it takes months of careful planning. So, platforms prefer to work with founders who are willing to be highly hands on in driving their campaign’s own success. Educate yourself on what this means, and you will be in terrific shape to succeed on Seedrs.
You’ll learn how to choose the right platform, build a crowd, and raise game-changing money.
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