A new crowdfunding platform that's looking to help
idea-stage start-ups access investment launched today.
Seedrs aims to crowdfund
businesses from the ideas stage and make it possible for anybody to
invest money ranging from £10 to £150,000 per-startup in exchange
The business is the product of three years hard work by Oxford
University graduates Jeff Lynn and Carlos Silva. After raising
£1m in investment for their own business this year, the
founders are now aiming to help other entrepreneurs and start-ups
who are finding it difficult to access early stage funding.
They feel start-ups are too small for venture capitalists,
too early for angel investors and that start-up accelerators simply
don't do enough for a business idea to be successful. Seedrs is
Seedrs charge 7.5% on any amount raised through its platform and
this is deducted before the funds are transferred to the start-up.
It means that if the fundraising isn't successful it doesn't cost
the start-up anything and effectively means that by posting
the idea on Seedrs, the entrepreneur has nothing to lose, only
money to gain.
For investors a further 7.5% charge is added on any returns they
make on their initial investment. This could be through the
proceeds of a sale, dividends or any other money the start-up may
pay the investor.
Aside from playing matchmaker between entrepreneur and investor,
Seedrs handles all administration and looks after the shares as a
To ensure that the site doesn't get flooded with illegal or
unethical ideas, there is a short vetting process for entrepreneurs
in the form of a disclosure review and some due diligence.
Investors menawhile have to be approved by passing an Investment
Authorisation Questionnaire, that ensures they know the risks of
early stage investing.
With funding hard to come by in a current tough
investment climate, here's hoping Seedrs can make a difference.
For more information and to find out more about Seedrs, click here.