In order to get started creating your campaign, simply log into Seedrs, go to “Raise” and then “Create a New Campaign.” The rest should be fairly self-explanatory, but here’s some additional information you may find helpful as you go through the process.
Select the best type of campaign for you
Seedrs offers three kinds of campaigns for raising investment: Equity, Funds and Convertibles. Read more about the three kinds of campaigns on Seedrs.
Most campaigns are Equity, and these are the campaigns that our online campaign creation process is currently designed for. If you are interested in raising a Fund or a Convertible, please email us to discuss the process.
How much can you raise?
There is no minimum or maximum amount you can raise on Seedrs, but generally you should seek however much you need to get your business to the next level of growth. As a rough guide, we find that idea-stage startups who are looking to build their minimum viable product (MVP) or gain initial validation tend to seek between £/€30,000 and £/€50,000; early-stage businesses that have an MVP or other meaningful progress and are now looking to generate traction and early revenues tend to seek between £/€50,000 and £/€250,000; and more established growth-focused businesses looking to scale tend to seek between £/€250,000 and £/€1,000,000 or more.
When setting your target, bear in mind that Seedrs operates an all-or-nothing model. You can overfund, but if you don’t at least hit your target you will receive nothing and investors get their pledge back. So while you shouldn’t aim for so little money that you’ll need to start fundraising again very soon, you should be careful about setting your target unrealistically high, as well.
Think hard about your valuation
Valuation is the process of determining the current worth of a business and, as a result, the amount of equity you give away in exchange for a certain amount of investment. You will have the opportunity to set the valuation of your business and therefore the percentage of equity you will give to investors in exchange for the money you raise. Part of an investor’s investment decision will be whether they think your valuation represents a good deal, and if you set the valuation too high, the investor may not invest even if they like your business.
There are many qualitative and quantitative techniques for valuing companies, but valuation is far more of an art than a science. The most important thing to remember when setting your valuation is that it needs to be low enough to compensate investors for the risk they are taking. Most businesses fail, so investors know that to make a profit across their portfolio, they need to see significant upside from those that succeed. At the same time, you don’t want to price your business so low that the founding team winds up giving away too much equity too early.
To get a sense of what valuation levels are likely to appeal to investors, take a look at funded Seedrs campaigns. Bear in mind that different businesses are at different stages, so try to find those that seem to be at a similar level of development (and risk) as yours. The valuations these businesses set may give you a helpful indication of where you should set yours. You may also find that angel investors have pretty good insight into where they think your valuation should be, so it may be worth setting up calls to get their input.
Telling your story
The written part of your campaign will consist of answers to a series of questions about your idea, your market and your team. Each of the questions is straightforward and self-explanatory, but the point in answering them is that you should be telling your story. Your achievements to date and a clear understanding of how the business will grow are all important, but they should be framed by a narrative that gives investors a sense of who you are, where your passion lies, why you started this business and, most importantly, why you think it could become the next big thing.
After you have submitted your campaign in an as-close-to-final version as possible, our team will undertake an initial review before it proceeds through the process. Campaigns that are too brief, too early in development or are otherwise not quite suitable for equity crowdfunding tend to not to get through this stage.
For campaigns that do, a member of our team will review it and get back to you with comments or questions, usually within two weeks. We will then go through an iterative process of revision until we’re all happy with the final product.
It may take a few weeks between submission and our initial response, and a further few weeks of back-and-forth collaboration, so please factor this into your timing.
We hold campaigns to a very high standard: our job is to make sure that each business “is what it says on the tin”, and we need to confirm that every statement you make, and the campaign as a whole, is fair, clear and not misleading. So while you should tell as compelling an attractive a pitch as you can, you need to ensure that you can validate any factual claims (such as sales traction, team experience or industry trends) with supporting evidence (verifiable by third parties), and that any aspirational or opinion statements are reasonable in context. At the same time, our review process is very collaborative – we will request evidence and suggest changes where we think necessary.
Adding creative visuals and videos
They say a picture is worth a thousand words, and nowhere is that more true than when raising funds online. Investors are busy, and in many cases they will only read the great text you’ve written if they’re first captivated by imagery. So create a great logo and include quality photos, designs and other visuals in your campaign. Product mockups and depictions of customer journeys can be particularly useful for helping people to understand how your business works. You can submit those to the team just before going live.
Meanwhile, the true centrepiece of your campaign will be your video. This is the bit that most investors focus on, and it is your opportunity to speak directly the people you are asking to back you. There is no magic formula to creating a great video, but many of the most successful ones have included a combination of team members speaking to camera (so that investors can look into the whites of your eyes) with shots of the product or settings relevant to the market. Watch some of the videos that funded Seedrs campaigns have used to get a sense of what may work well for you.