Harnessing thePower of the Crowd

Alysia WanczykMarketing Director

www.seedrs.com @seedrs

• Raising finance from peers through crowdfunding is on the rise. Worth $8 billion in 2011 and estimated to be worth upwards of £300 billion!

• Involves mass participation and new pools of capital.

• Harnesses social media and Web 2.0 in general.

Three basic forms: 1. Peer-to-peer lending such as Kiva or Funding

Circle2. Rewards-based crowdfunding like Kickstarter3. Crowdfund investing (equity-based crowdfunding)

Intro to Crowdfunding

Entrepreneurs lack access to idea-stage capital. So, many great businesses don’t get off the ground.

Too small an amount for most institutional

investors

Too early (risky) for most angels

Too much for non-wealthy friends and

family

www.seedrs.com @seedrs

Problem #1

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Investing in new businesses appeals to many people. But most lack the opportunity to do so.

Often limited to high-net-worth individuals

as minimum investments tend to

be £10K or more

And, it can take months of work for legal paperwork to be

processed

So, investing in startups is limited to the handful

(top 1%) of us who have access to this kind of capital and free time

www.seedrs.com @seedrs

Problem #2

1 2 3

Seedrs is an online platform for discovering and investing in great startups.

www.seedrs.com @seedrs

The Solution

Only platform authorised to allow anyone to invest from £10 and up into the campaigns they choose.

Startups and other new businesses can raise early-stage investment from friends, family and independent investors.

And, we’re the first pan-European platform open throughout Europe (all 32 countries in the EU, EEA and Switzerland)

Info about business (which we review)

Amount of money sought (all-or-nothing)

Percentage of equity (take-it-or-leave-it)

EntrepreneurCreates Campaign

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How Seedrs Works

www.seedrs.com @seedrs

All payments and documentation

are online

Can participate in Q&A or reach out to entrepreneur

offline

Invest in campaigns you

choose

InvestorsReview and Invest

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How Seedrs Works

www.seedrs.com @seedrs

Legal due-diligence and subscription

agreement

We charge a 7.5% success fee (sole entrepreneur fee)

Investment made and held by us as nominee manager

SeedrsManages Transaction

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How Seedrs Works

www.seedrs.com @seedrs

Only has to work with one legal shareholder

Accesses support of wide base of

investors via the platform

Can develop deeper relationships with

individual investors

Entrepreneur Grows The Businesses

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How Seedrs Works

www.seedrs.com @seedrs

We monitor the shares, but investors can get

involved and vote

We pass on proceeds from sale

or dividend

We charge 7.5% of any upside (sole

investor fee)

Investors Get Information, Involvement and Returns

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How Seedrs Works

www.seedrs.com @seedrs

www.seedrs.com @seedrs

Some Stats So Far

>£4.7 million raised(£2.25 million just this month!)

51deals

16Monthssincelaunch

600% annualised growth rate

Eighteen thousand investorsand growing fast

www.seedrs.com @seedrs

Recent Creative Success

EVOCHA30 April – 9 May 2013£30,000 from 82 investors

• Evocha is an online-only clothing brand selling a limited, curated range of luxury fashion essentials manufactured using the highest quality materials in the best factories.

• Evocha fell between fashion angels and tech angels, so they found it hard to take their first steps. They’ve now launched several lines including shirts, dresses and scarves.

www.seedrs.com @seedrs

Recent Creative Success

HAPPY DAYS10 October – 2 December 2013£250,000 from 345 investors

• Commercial UK theatre tour from January 2014• Invest for as little as £10 on industry standard

terms• Also offered reward to investors of £1K and up• Had a lead angel who was able to speak both

languages

www.seedrs.com @seedrs

1. It helps to have someone speak/articulate both languages

2. Creativity in campaign and marketing is a massive asset

when raising investment – for any business

3. Investors like portfolio diversity

4. A great way to validate concept and engage with existing

audience

5. Post-funding management can be a lot of hard work without

proper setup in place - takes away from being creative!

6. Platform flexibility is really important to evolution of space

Learnings from Creative Campaigns