So, has a friend, family member or someone in your network told you about their plans to crowdfund (or raise investment) on Seedrs? You’re probably wondering who are Seedrs? Why you should invest on Seedrs? And what you have to do in order to invest? Well in this blog post we aim to answer all of those for you, along with some useful info:
Who are Seedrs?
Seedrs is the UK’s most active investor in private companies and was named ‘Best Crowdfunding Platform’ in 2017 by Share Magazine. Over £360 million has been invested into campaigns on the platform with more than 610 deals funded since launch.
We’re a Pan-European platform that allows all types of investors to invest as little or as much as they like in businesses they believe in and share in their success. It allows ambitious businesses in all sectors to raise capital and build community through an efficient, online process.
Did you know?
- Seedrs has a market-dominating 74% campaign success rate, that’s a staggering 45% higher chance of a campaign reaching its funding target on Seedrs than the nearest competitor.
- 4 out of the 5 largest equity crowdfunding rounds in 2017 were funded on Seedrs, and 6 out of the top 10. Giving you access to larger deals as an investor.
- Seedrs set the record for the largest UK equity crowdfunding round in 2017 with Revolut raising £3.9m, not including our own record-setting £6m crowdfunding round.
- Seedrs also set the record for the largest Dutch equity crowdfunding campaign in the Netherlands, with Bolt Mobility who raised €3.2m from 2,393 investors.
- Seedrs has the only fully functioning secondary market in the UK.
- Seedrs is a full-service lifecycle platform that offers professional grade investor protections no matter how much you invest.
Other recent accolades include:
Why invest on Seedrs?
There are many benefits of investing on Seedrs, below are seven to help you get started;
Enjoy peace of mind with world-class due diligence
We conduct thorough due diligence on the company that’s raising, its legal structure and its directors before we close an investment. In fact, our investment team performs key checks and searches on every company that raises on the platform, using a combination of public registers, third-party sources and information requested directly from the company. No wonder our due diligence is becoming known as the Seedrs Standard.
Invest on the same terms no matter how much you invest
On Seedrs, you’ll become a shareholder in a business on exactly the same terms as everyone else – including professional investors such as venture capitalists if they’ve invested in the campaign on Seedrs.
You could maximise UK investors tax reliefs
If you’re a UK taxpayer, you could take advantage of generous tax reliefs, including up to 50% of the investment cost back in Income Tax Relief if you invest in SEIS eligible shares or 30% in EIS eligible shares. We’ll even take care of your organising your digital tax certificate which will be available to download in your Seedrs account.
Please note that tax treatment depends on your individual circumstances and may be subject to change in the future. Seedrs does not provide legal, financial or tax advice of any kind, and nothing in this guide constitutes such advice. If you have any questions with respect to legal, financial or tax matters relevant to your interactions with Seedrs or its affiliates, you should consult a professional adviser.
Enjoy professional protections and warranties
We enter into a suite of professional contractual protections with each company that raises on Seedrs, including warranties that provide a level of legal protection against a business providing inaccurate information. We also generally ensure that the company’s shareholder agreement contains pre-emption rights on the issue of new shares and investor consent rights over the creation of new classes of shares.
The opportunity to maintain your ownership percentage with pre-emption rights
If the business you’ve invested in decides to raise further funds, because all investments on Seedrs automatically include pre-emption rights, you may be given the chance to invest your pro-rata amount in that round based on your current shareholding. This gives you the option of maintaining your percentage of ownership of the company – and may help you to maximise your returns if the investment is successful.
Easily manage your portfolio online
Stay up-to-date with how your portfolio is performing with real-time reporting. Then, if returns are generated, we’ll credit those funds, less our fee (and for publicly listed shares, any broker fee), directly into your Seedrs Investment Account. From there you can re-invest into other businesses on Seedrs or withdraw the funds from your account.
Unparalleled liquidity opportunity on the Seedrs Secondary Market
The Seedrs Secondary Market is the only fully functioning early-stage equity secondary market in the UK, enabling you to buy and sell the shares of businesses that have raised on Seedrs. This allows you to rebalance your investment portfolio or potentially seek an earlier exit. The Seedrs Secondary Market opens for one week each month.
Investing involves risks, including loss of capital, illiquidity, lack of dividends and dilution, and should be done only as part of a diversified portfolio. Please read the Risk Warnings before investing. Investments should only be made by investors who understand these risks. Note that not all shares will be eligible for the secondary market and, even if they are, the ability to buy and sell shares will depend on demand. It can be difficult to find a buyer or seller, and investors should not assume that an early exit will be available just because a secondary market exists.
How to start investing on Seedrs in just 3 simple steps
We’ve made it easy to invest in businesses you believe in and share in the success on Seedrs:
Sign-up and become an authorised investor in minutes
If you’re new to investing on Seedrs, you need to create a free account and become authorised to invest. Start by selecting the investor profile that best describes you: ‘Everyday Investor’, ‘High Net Worth Investor’ or ‘Sophisticated Investor’. You’ll see short definitions of each profile to help you decide on the most appropriate one for you when you sign-up.
As part of the regulatory process that all financial institutions must carry out, we’ll also need to verify your identity through a valid form of ID.
Review pitches of the businesses you’re interested in
Check out a businesses pitch, ask questions to the entrepreneurs and even request further information if you need to.
Make an investment
If you’ve discovered a business you wish to invest in and are now an authorised investor on Seedrs, it’s easy to make your investment and join the business on its journey.
Click ‘Invest’ on the pitch page.
Enter the amount you wish to invest.
Confirm your investment and pay.
Become a shareholder once the campaign closes and final Due Diligence is complete.
Follow your investment’s performance in your personalised portfolio on Seedrs.
Financial Conduct Authority (FCA) authorised