• Ludo Farine

Seedrs 🌱 - Help startups to grow with crowdfunding

Seedrs is a platform to help startups to grow by raising money via the crowd - like you, like me. Be right at the start of their journey.

Sometimes you wonder "If only I was there right when Apple or Tesla started". Yes big companies from today started small with one or two guys. Not all of them will survive, by the 5th year, 50% of them would have disappeared. But fortunately another 50% thrive and some of those actually will have a booming market. Seedrs 🌱helps you invest in startups that want to grow.

Get £25 free investment credit at signup

On their website, you will see dozens of live pitches from companies. Usually the founder will explain the story behind the company, the journey and successes so far, the team but most importantly how much funding they are looking to raise and why. This is very important to read through the pitch and ask any questions you feel important via the dedicated forum. Also, you can usually request access to documents 📝 such as presentation and forecast sales and revenues.

If you decide to invest in one company, you will basically receive a certain number of shares based on the current share price and amount you put in. The company would give a certain % of equity back to the pool of new investors. Most of the time, if you invest less than 10k£, you will have B share - which is basically the same as A shares except that you won't have vote pre-emption rights for important decisions in the business. Please note that the share price is something that the company sets up based on their valuation - valuation which is depending on how much they trade, how much assets they have and how much important they feel in the near future. So be careful and make sure the valuation is appropriate.

Not everyone have millions to invest in one company. And also, the more diversification you get, the more chance you have of success. This is where Seedrs 🌱fills those two criterias. You can invest as little as £10 in one company.

Take advantage of the EIS and SEIS Tax relief

By using my referral link, you can get £25 free investment credit in your account, when you successfully invest £150 within 30 days of signing up. It doesn't have to be £150 in one single transaction, it can be from various investments, as long as the total makes it to £150.

Here are some previous and current examples of companies who are raising via Seedrs:

  • Dozens 🍳: a new digital bank which helps you understand how much money you spent each month in various categories, an helps you change to save more money. That savings money can then be transferred to 5% bonds interest.

  • The Cheeky Panda 🐼: they produce toilet paper made of...bamboo. Yes, it's all about sustainability, no plastic and no trees are being used like traditional toilet rolls.

  • GoodBox 😇: less and less people use cash so they created devices for charities where you can simply donate by tapping your contactless card. There is even as special plate made for churches to collect money during the mass.

Final point, but important one is tax relief. If you're UK taxpayer, there is an initiative from HMRC to "reward" you from investing in new startups. If the company is less than 7 years old and depending on what they trade, they can be eligible for EIS tax relief. That means you can get back 30% of the money you invested of your tax return 💵. Some are also eligible for SEIS which gives you back 50% tax relief of your investment. You can read more in the guide.

Also if any of companies would enter into administration, you might be able to claim the loss as tax relief too, depending on the circumstances.

All in all, Seedrs is a great way of discovering new companies, what is becoming exciting. A lot of them are early stage with concepts and no actual product, but some of them are already renowned and they give you a chance to be part of their journey. Whether you invest to gain money, to support a company in what they do, crowdfunding is a good way of getting involved with little money.

Please read my full website Disclaimer before making investment decisions.