It’s hard to pick out a highlight given how well things have gone for equity crowdfunding platform Seedrs lately; they certainly hogged the headlines last week as board advisory member and 2013 Wimbledon champ Andy Murray announced he would be making 3 investments through the platform, into Trillenium, Tossed and Fuel Ventures, Seedrs itself launched a campaign to raise the final £2.5m of a £10m Series A round led by Augmentum Capital and Woodford Patient Capital Trust, and the company announced this morning that an average of £430k per hour was invested via their platform over the course of the week.
There have been doubts raised about crowdfunding platforms ever since they first began to emerge as a credible alternative to seeking angel or VC investment at the beginning of the decade, but the public’s appetite for investment has so far remained undiminished; 4 more companies on Seedrs have now announced that they are overfunded, amongst them games company PixelPin (190% overfunded, seeking £250k), Venrex Fund (150%, seeking £1m), an FCA regulated early stage VC, and Nurturey (133%, seeking £90k), a platform aimed at helping new parents to digitise and simplify their lifestyles.
Another success story is “Airbnb” for cars Ascendia Drive which secured just under £400k to try to disrupt the $60bn car hire industry. Owners can list and “let out” their cars to other drivers rather than leaving them in the driveway leaking cash, as users are encouraged to “own their driving experience”, without necessarily owning their car.
Ascendia, founded in Maidstone by Graeme Risby and Rob Larmour, raised the funds in just a few weeks, in exchange for 24% equity in the business.
Seedrs uses a nominee structure to protect companies raising funds from the risks associated with having too many small investors. Seedrs then manages voting and issue consents on behalf of the individual investors. The company takes a 7.5% fee from successfully funded businesses, as well as a success fee from investors, also 7.5%, on any profits made to cover day to day management, admin, and to take care of investor protection.