April 24th, 2017
Crowdfunding start-up Seedrs raises £1m through its own website
Crowdfunding start-up Seedrs has raised a £1m cash injection in a single day using its own platform, in an unusual display of meta-funding
Crowdfunding start-up Seedrs has raised a £1m cash injection in a single day using its own platform, which it will use to as working capital while it strives for profitability.
London-based Seedrs allows investors to put as little as £10 at a time into a range of start-ups which create short video pitches to present their ideas. Companies have a 90-day window to raise a target amount of cash; the investment goes ahead if they succeed, but the money is returned if they fail.
The business announced without warning this morning that it was offering 12.66 per cent equity for £750,000, which it went on to raise within hours from around 220 investors. One anonymous Seedrs user alone put in £100,000. It is a rare example of a crowdfunding service raising cash using it's own platform. But the speed with which it raised the money prompted to company to make the investment period open-ended. The investment has raised more than a million pounds at the time of writing.
"We are simply overwhelmed by the support our campaign has received, and we never could have expected it to reach 100 per cent this quickly. We see this as a tremendous validation of our model and our business, and we want to thank everyone who has invested for joining us on our journey," the start-up said in its own pitch at Seedrs.com.
"Given the level of interest our campaign has seen, we have decided to keep it open for further funding at the same valuation. Additional capital will help us grow more quickly, and as importantly, we want to get as many investors as we can because there are no better marketers than people with a vested interest in our success. So anyone who would like to invest at this stage is welcome to do so, and we will put out a notice as and when we decide to close the campaign."
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