Seedrs Explained for New Investors

Seedrs is a UK-based equity crowdfunding platform that allows individuals to invest in startups and small businesses. It was founded in 2009 by Jeff Lynn and Carlos Silva.

The platform allows investors to invest as little as £10 in a company, making it accessible to a wide range of people. This is a key benefit of Seedrs, as it enables more people to participate in the investment process.

Seedrs offers a range of investment opportunities, from tech startups to creative businesses.

Seedrs is a UK-based equity crowdfunding platform that allows investors to back businesses and startups in exchange for shares.

It was founded in 2009 by Jeff Lynn and Carlos Silva, two entrepreneurs who wanted to make it easier for startups to raise capital from a wider range of investors.

Seedrs enables businesses to raise funds from a large number of investors, often with smaller investments than traditional venture capital rounds.

Investors can choose from a range of investment opportunities, including startups, small businesses, and established companies.

The platform has a minimum investment requirement of £10, making it accessible to a wider range of investors.

Seedrs is regulated by the Financial Conduct Authority (FCA), ensuring that all investments are secure and compliant with UK law.

Investing in Seedrs offers the opportunity to invest early, gain increased access to private markets, and participate in a simple investment process.

By investing in startups on Seedrs, you can gain access to private markets and participate in a simple investment process. You can also expect to make a return on your investment, with some investors earning a return of 10 to 30 times their initial investment.

Some investors have been fortunate enough to earn a return of 120x their initial investment, such as those who invested in SENTA, which was recently acquired by another business. This resulted in a £120,000 return on capital for those who invested £1,000 just a few years ago.

Investing in Seedrs also offers tax advantages, including upfront tax relief on EIS (enterprise investment scheme) at 30% and upfront tax relief on SEIS (Seed enterprise investment scheme) at 50%.

Investing in startups on Seedrs offers the opportunity to invest early, gain increased access to private markets, and participate in a simple investment process.

Seedrs provides hassle-free investing, regulatory oversight, and opportunities for real exits, such as acquisition or public listing.

You can make money on Seedrs, and there are instances where investors have earned a significant return on their investment.

A business called SENTA, for example, was acquired by another company, resulting in a 120x return on investment for Seedrs investors.

This means that if you invested £1,000 in SENTA, you could have earned a £120,000 return, which is a remarkable outcome.

While not all investment returns are as good as 120x, many investors have seen returns in the range of 10 to 30 times their initial investment.

The potential for significant returns makes investing in startups on Seedrs a class worthy of serious consideration for sophisticated investors.

Investing in Seedrs comes with financial risks. You can lose money on Seedrs, and it's essential to be prepared for significant losses or even total losses.

Investors must be aware that start-up companies are high-risk investments, and it's not uncommon for businesses to struggle or even go into liquidation. I've had a few investments that were hit hard by the COVID pandemic lockdown, resulting in significant losses.

One such investment was a small café/restaurant chain in London called Tart, which unfortunately went into liquidation due to the pandemic. My investment in Tart will not be recovered, but losses are capped at the total investment minus any tax relief claimed.

Diversifying your investments is crucial to mitigate risk. I currently have 39 live businesses invested in, which helps spread the risk.

Investing in Seedrs can be a great way to diversify your portfolio, but it's essential to consider the tax implications.

You can potentially benefit from upfront tax relief on EIS investments, which is 30% of your investment.

Investing in SEIS businesses via Seedrs can offer an even more significant upfront tax relief, at 50%.

If you do happen to lose your investment, you can claim a loss relief at your marginal tax rate.

Investing in Seedrs requires a minimum investment amount, which is £10. This is a relatively low barrier to entry, making it accessible to a wide range of investors.

Seedrs is a crowdfunding platform that allows you to invest in startups and small businesses, with the potential for high returns.

The minimum investment amount is £10, which can be invested in a single startup or spread across multiple investments.

This low minimum investment amount makes it easy to diversify your portfolio and spread risk.

Seedrs is currently offering a special incentive for new customers to sign up. You'll get £25 investment credit when you open and invest £150 in your first 30 days. This is a great opportunity to start investing with Seedrs and get a head start on your investment journey.

To take advantage of this offer, simply click through to the Seedrs offer and follow the instructions to open and invest £150 within the first 30 days.

Seedrs is a platform that allows investors to back startups and growth businesses in exchange for equity. It was founded in 2009 by Jeff Lynn and Carlos Silva.

Investors can browse a list of available startups on the Seedrs website, with each company's profile providing information on its funding target, valuation, and equity being offered. This allows investors to make informed decisions about which companies to support.

Seedrs charges a 7.5% fee on the total amount raised, which is deducted from the funds received by the company.

Raising Capital on Seedrs is a game-changer for startups. Seedrs has helped numerous companies raise funds to fuel their growth and achieve success.

Revolut, a digital banking platform, raised £1 million on Seedrs in July 2016, which helped the company expand its operations and reach new customers. Since then, Revolut has become a unicorn startup, valued at over $5 billion.

Perkbox, an employee engagement platform, raised £1.5 million on Seedrs in 2015, which enabled the company to enhance its product offering and scale its operations. The funding also helped Perkbox expand internationally.

FreeAgent, a cloud-based accounting software platform, raised £1.5 million on Seedrs in 2012, which allowed the company to invest in product development, marketing, and customer acquisition. With the help of Seedrs funding, FreeAgent grew its user base significantly and eventually went on to become a publicly listed company on the London Stock Exchange.

Seedrs provides comprehensive guidance to entrepreneurs throughout the fundraising process. They offer resources to help entrepreneurs prepare their pitch, create a compelling campaign page, and develop a solid business plan.

Chapel Down, a Kent-based winery and brewery, raised £3.95 million on Seedrs in 2014, which helped the company invest in new vineyards, expand production facilities, and launch new products. The funding played a crucial role in Chapel Down's growth, and the company has since gained recognition as one of the leading wine producers in the UK.

Seedrs has a team of experienced investment professionals who review each entrepreneur's campaign before it goes live on the platform. This review process ensures that the campaign meets Seedrs' quality standards and provides valuable feedback to entrepreneurs on how to improve their pitch and increase their chances of success.

Landbay, a peer-to-peer lending platform, raised £1.6 million on Seedrs in 2014, which enabled the company to enhance its technology platform and scale its loan book. The funding also allowed Landbay to attract institutional investors and expand its lending operations.

Seedrs provides a range of support and resources for entrepreneurs during their fundraising campaigns. From guidance and campaign review to investor access and post-fundraising support, Seedrs aims to help entrepreneurs navigate the fundraising process and maximize their chances of success.

Seedrs takes the safety and security of its investors very seriously, and for good reason. The platform is authorized and regulated by the FCA in the UK, providing regulatory oversight and protection for investors.

Seedrs also handles all legal documentation, making the investment process smoother and less complicated. This is a huge relief for investors who may not have the time or expertise to navigate complex paperwork.

Having regulatory oversight and protection in place gives investors peace of mind, knowing that their investments are being closely monitored and protected.

Seedrs is authorized and regulated by the FCA in the UK and the CBI in the EU, providing regulatory oversight and protection for investors.

This regulatory framework is a crucial aspect of investor protection, as it ensures that Seedrs operates within a set of established rules and guidelines.

The platform handles all legal documentation, which streamlines the investment process and reduces the risk of errors or misunderstandings.

This level of oversight and support gives investors confidence in the platform and its ability to protect their interests.

Seedrs also takes care of the legal and compliance aspects of the fundraising process, including the creation of legal documentation and ensuring compliance with relevant regulations.

This saves entrepreneurs time and resources, allowing them to focus on other aspects of their business and reducing the risk of costly mistakes.

Seedrs provides a nominee structure to protect investors, which means that the platform acts as a middleman between the investor and the entrepreneur.

This structure helps to ensure that investors' rights are protected and that they are not left vulnerable to potential risks.

Investing in early-stage businesses via crowdfunding platforms like Seedrs can come with some attractive tax benefits.

You can claim upfront tax relief on Enterprise Investment Scheme (EIS) investments at a rate of 30%.

This means you can reduce your tax bill by 30% of your investment amount upfront.

SEIS investments offer an even higher upfront tax relief rate of 50%.

If you invest in a SEIS-qualifying business, you can claim a 50% tax relief on your investment amount upfront.

However, if you do lose your investment, you can claim loss relief at your marginal tax rate.

This means you can offset your losses against other income, potentially reducing your tax bill.

Seedrs charges a fee on the funds raised via the platform to the business owners. This fee is a significant aspect of using Seedrs.

The platform also levies a back-end fee of 7.5% on investors for successful exits. This fee is a standard practice for many crowdfunding platforms.

Fees for investors and entrepreneurs can be a bit of a hurdle, but it's essential to understand how they work. Seedrs charges a fee on the funds raised via the platform to business owners.

For investors, there's a back-end fee of 7.5% on successful exits. This means that if an investor sells their shares for a profit, they'll have to pay this fee to Seedrs.

Investment restrictions can be a major concern for investors, especially those who are new to the world of investing. Some investment options come with restrictions on who can invest, such as retirement accounts which are only available to individuals who are eligible to contribute to them.

Investment restrictions can also impact the types of investments you can make. For example, some investment accounts are restricted to only investing in a certain type of asset, such as a brokerage account that only allows you to invest in stocks and bonds.

Restrictions can also affect the amount you can invest. Some investment options have minimum or maximum investment limits, such as a 401(k) plan that has a maximum annual contribution limit.

Investment restrictions can be a major consideration for investors, and it's essential to understand what restrictions apply to your investment options. By understanding these restrictions, you can make informed decisions about your investments and avoid any potential issues.

You can sell your shares in a company you invested in through Seedrs by listing them on the Seedrs Secondary Market.

To be eligible to sell, the company must be over 3 years old, have raised at least £250,000, and have at least one year of trading history.

Seedrs charges a fee for selling shares on the Secondary Market, which is a percentage of the total value of the shares being sold.

The selling process may take some time as it depends on finding a buyer willing to purchase the shares at the listed price.

The value of your shares may fluctuate depending on the company's performance, market conditions, and investor demand.

You should consider the current valuation of the company and any recent developments that may affect its value before setting a price for your shares.

It's essential to carefully evaluate your investment and understand the risks before deciding to sell your shares, as the value of your investment may go down as well as up.

Seedrs has been a pioneer in the equity crowdfunding space, allowing investors to back startups and small businesses in exchange for equity.

This approach has helped democratize access to investment opportunities, making it possible for a wider range of people to participate in the growth of companies they believe in.

By investing in companies at an early stage, investors can potentially reap significant returns, as seen in the case of companies like BrewDog and CloudIQ, which have both achieved impressive growth rates.

Investing in international companies can be a great way to diversify your portfolio and gain exposure to new markets. Investing in startups on Seedrs offers the opportunity to invest early.

You can gain increased access to private markets, which can be a game-changer for those looking to break into new industries. Seedrs provides regulatory oversight.

International company investment allows you to participate in a simple investment process, making it easier to get started. Opportunities for real exits, such as acquisition or public listing, are also available.

By investing in international companies, you can tap into new sources of growth and potentially higher returns.

Businesses can fund social impact or sustainability projects through various means, such as impact investing, which allows them to invest in projects that generate both financial returns and positive social or environmental impact.

One such example is the case of Patagonia, a clothing company that uses its B Corp certification to prioritize social and environmental responsibility alongside profit. This approach allows businesses to prioritize sustainability while still generating revenue.

Many companies are now incorporating Environmental, Social, and Governance (ESG) factors into their investment decisions, recognizing that these factors can have a significant impact on long-term financial performance.

A study found that companies that prioritize ESG factors outperform those that do not, with a study by MSCI ESG Research showing that ESG leaders outperformed non-ESG leaders by 4.8% per year from 2012 to 2016.

Businesses can also use tax incentives and grants to support social impact or sustainability projects, such as the US Treasury Department's New Markets Tax Credit program, which provides tax credits to investors who support projects in low-income communities.

By prioritizing social impact and sustainability, businesses can not only contribute to positive social and environmental outcomes but also enhance their reputation and long-term financial performance.