We built Seedrs based on two observations:
1. A vast number of entrepreneurs need £150,000 or less to take their "first step" before launching or seeking later-stage capital. For most entrepreneurs – including highly-talented ones – this is the toughest capital to access. Venture capitalists don't invest that small and angels rarely invest that early, so unless the entrepreneur has a few very wealthy friends or family members, raising this money is difficult at best and often impossible. It is due to lack of this capital that many potentially great businesses never get off the ground.
2. Many people would like to invest small amounts of money in startups. Some want to build a portfolio in order to get exposure to high-growth, high-risk asset class. Others want to support friends, family and community members while getting the benefit of upside if they succeed. And still others want the excitement of being a "Dragon". Due to the high transaction costs of making small investments in private companies, though, it is extremely difficult to invest less than £10,000 in startup through traditional means.
Together these two facts reflect a major inefficiency in the market for seed capital. Seedrs is here to change that.