Seedrs opens doors for early stage crowdfunding
Silicon Valley has a very well-established seed funding system forstartups
but in Europe it’s a very
different situation. Early stage money can be hard to come by, and inmany cases starting out as true seed investors is a place that many angelsfear to tread.Step inSeedrs,a crowd platform
that allows investors to find and inreturn for equity: a Kickstarter forpre-revenue businesses. On Tuesdayafternoon, the U.K.-based service isopening its doors to the first trancheof startups, with the aim of connecting them to investors laterthis summer.
“We want to fill the super
early stage capital gap,” says Seedrs co
founder and CEO Jeff Lynn. “The first £50,000 or £75,000 —
enough toget you to minimum viable product or to get your proof of concept
isreally tough. We think we can massively increase the market, and thenmassively increase the amount of angel investing that happens in the
So how does it work? Subject to vetting, investors can sign up to put inanything from £10 to £100,000. Startups can ask for funding of up to£150,000
a relatively small sum, given that European law allows
crowdfunding up to €5 million… but Lynn says it’s all part of making
sure the service concentrates on that seed gap.