Becoming authorised to invest
In order to make investments, you need to successfully complete our Investment Authorisation Questionnaire, or self-certify as a “high net worth individual” or a “sophisticated investor”. This is intended to show us that you have the professional judgment and understanding to appreciate the risks of investing in private companies.
You may also want to update your user profile to include your photo, bio and contact details to make your experience as an investor more engaging.
Once you’ve become authorised you’ll be able to view investment opportunities. You’ll also be able to ask campaigning businesses questions publicly in their discussion sections and request additional documents from them privately. Don’t be shy about doing so, and if you’d like to meet with team or speak with them by phone just ask.
Making an investment
When you find a business that you’d like to invest in, simply click “Invest” on their campaign page. Enter the amount that you’d like to invest – from as little as £/€ 10 up to the full amount that the company is seeking – and note whether you’d like the investment to be public or anonymous. You will then be presented with an Investment Agreement, which is a standardised agreement between you and us with respect to your investment. If you’re happy with it, click to accept, and that’s it – you’ve made an investment!
After making your investment, you’ll be given the option to share the campaign on your social networks. This is a great way to help the business you believe in reach out to a wider network of people who may also be interested in investing.
Paying for investments
Once you’ve made an investment you’ll need to pay for it. If you are able to pay with a debit card, you can do so as part of the investment confirmation process. If you’re unable to pay by debit card, you will need to make a deposit into your Seedrs account and then allocate the investment amount to the investee campaign. You must deposit and pay for the investment before the campaign closes, or your investment will be cancelled and you will not receive shares in the business.
In order to make a deposit, you’ll need to go to your Seedrs Investment Account and follow the instructions there. You will see that you can make bank transfers or pay by debit or credit card (through Stripe) using the details on the deposits page.
Verifying your identity
Like all financial services businesses, we are required to verify the identity of our investors. This process is simple, and you will go through it the first time that you make an investment on Seedrs. In many cases we can conduct this automatically in the background, and you shouldn’t even notice. However, we may need to be in touch to ask for scans of certain identity documents before you can proceed with depositing funds into your account. All of this will be kept confidential and will only be used to verify your identity.
Businesses must reach their targets on Seedrs within 40 days, and if they do not, all investors receive their money back. However, if a business hits its target before the 40-day period is over, it can accept additional investment – in exchange for additional equity – if it so chooses. We call this overfunding, and investors who invest during the overfunding period do so on the exact same terms as other investors. The one difference in overfunding is that businesses do not have to accept any or all of the funds they raise in their overfunding period. We will let you know if a business has chosen not to accept your overfunding investment via email, and we will refund your payment to your Investment Account.
Cancelling an investment
You can cancel an investment at any time before a campaign closes from within your Investment Account. By cancelling, funds already paid will be returned into your Seedrs account to be paid into other investments, if you like.
If you have funds in your Seedrs account that are not currently committed to an investment, you may withdraw them at any time from your Investment Account. This can take up to 48 hours and must be returned to the account from which they originated.
Completing the transaction
Once a campaign closes and the investment team have successfully completed legal due diligence and investment documentation, we will transfer the funds to the company (minus our fee) in exchange for shares. We will then send you an electronic share certificate, confirming that you are officially an investor in the company, and will include a link to the business’s post-investment portal where you can keep in touch with them and their progress.