Seedrs raises £2m on own site

Start-ups

by Joe Curtis| 04 December 2013

Crowdfunding platform had originally sought £750,000.

Seedrs has set a world record after raising £2m in investment via its own site.

The London startup has raised the most equity ever via an equity crowdfunding site, after originally calling for £750,000 for an overall 12.66% share last week.

After reaching that goal in just hours, Seedrs raised more than £2m in return for 30% equity, the cash coming from more than 850 investors.

Jeff Lynn, CEO and co-founder of Seedrs, said: "We were completely overwhelmed by the support our campaign received. We see this as a tremendous validation of equity crowdfunding, our model and our business, and we want to thank everyone who has invested for joining us on our journey.

"For most entrepreneurs, raising £2m is a long, painful process. Using our own platform we've shown how startups can harness their customers' enthusiasm to raise money quickly and efficiently."

The startup plans to expand across Europe early 2014, setting up offices in key countries.

The company claims it has 27,000 registered members, who have collectively funded 51 deals to the tune of £4.5m since the startup's launch nearly a year and a half ago.

Lynn added: "This exciting new form of finance which allows new businesses to raise money from ordinary investors is here to stay and Seedrs securing £2m using our own platform is a vote for equity crowdfunding done properly, with protections for investors and a straightforward process for companies."

Recent FCA proposals are set to come into force early next year to provide stricter regulations over who can and cannot invest on equity crowdfunding platforms, with the body seeing the method as a threat to inexperienced investors.

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