Crowdfunding platform breaks record with £2m investment in one week

The London-based startup, which last week became the world’s first equity crowdfunding platform open to investors and entrepreneurs throughout Europe, had originally called for £750,000 of investment in return for 12.66 per cent equity.

Having met the target in a matter of hours, Seedrs – which provides a platform for ordinary people to provide early-stage investment for startups in return for an equity stake – extended the opportunity for investment to satisfy investor demand.

It has now secured over £2.1m – nearly three times the target amount – from over 850 investors, in return for just under a 30 per cent stake in the business. 

The overwhelming response to the campaign saw Seedrs hit £750,000 by 10:30 am on the day the campaign opened, reach £1 million by that afternoon and secure £1.5m in just two-and-a-half days, shattering all existing records.

Jeff Lynn, chief executive 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 Seedrs fundraising campaign included everyone from ordinary investors investing from as little as £10 to business angels investing up to £125,000. Together, these investors saw the potential for equity crowdfunding to disrupt traditional financial services and leapt at the chance to buy a stake in one of the leading players in an industry that experts predict could be worth $300bn (£185bn, €220bn) in time.

Of the decision to accept more capital than initially targeted, Mr Lynn said:

“Given the incredible level of interest our campaign has seen, we decided to keep it open for further funding at the same valuation. The significant additional capital we have secured will help us grow more quickly, and just as importantly, we want to get as many investors as we can – there are no better marketers than people with a vested interest in our success.”

Mr 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.”