Finance SIG 17 October Entrepreneurs lack access to idea-stage capital. So, many great businesses don t get off the ground.

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1 Crowdfunding Innovative Startups Simon Potter Investment Associate Problem #1 Entrepreneurs lack access to idea-stage capital. So, many great businesses don t get off the ground. Too small an amount for most VCs and institutional investors Too early for most angels (only 3% of UK angel investments are seed-stage, and fewer idea-stage) Too much for non-wealthy friends and family ( 10K or 25K of risk capital is a huge amount for many people) 1

2 Problem #2 Investing in startups appeals to many people. But most lack the opportunity to do so. Often limited to highnet-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 Our Solution We allow investors to invest between 10 and 150,000 in startups they choose through a simple, online process. We let startups raise up to 150,000 in equity capital seamlessly from friends, family and independent investors. 2

3 Entrepreneur Creates Listing Info about business (which we review) Amount of money sought (all-or-nothing) Percentage of equity (take-it-or-leave-it) Investors Review and Invest All payments and documentation are online Can participate in Q&A or reach out to entrepreneur offline Only invest in startups you choose (not a fund) 3

4 Seedrs Manages Transaction Legal due-diligence and subscription agreement Investment made and held by us as nominee/ manager We charge a 7.5% success fee (sole entrepreneur fee) Entrepreneur Grows The Businesses Accesses support of wide base of investors via the platform Can develop deeper relationships with individual investors Only has to work with one legal shareholder 4

5 Investors Get Information, Involvement and Returns Investors can vote while we enforce subscription agreement We pass on proceeds from sale or dividend We charge 7.5% of any upside (sole investor fee) What We ve Done So Far 2.1 million invested across 37 deals in the 15 months since launch ~15,000 investors registered and growing quickly Companies have gone on to raise top-tier VC, join major accelerator programmes and launch awesome products 5

6 A Few of Our Deals So Far Stats Raised 17.5K in August 2012 After launching in late 2013, they won the NACUE Varsity Pitch competition and were accepted to Startupbootcamp accelerator programme. Then raised 60K in March after showing significant product traction. About A free way for consumers to make expert purchase decisions in just 60 seconds. A Few of Our Deals So Far Stats Raised 150K in April 2013 Accepted into first Wayra UK accelerator cohort. Named #2 on Mashable s list of top 25 UK startups About Replaces passwords with pictures for an easy and secure login for mobile devices and tablets. 6

7 A Few of Our Deals So Far Stats Raised 60K in August 2012 Has since merged with their main competitor to become Future Ad Labs and has completed a fundraising round with top-tier VCs. About Pioneering a new age of CAPTCHAs that are engaging, simple & secure. Simon Potter Seedrs Limited is authorised and regulated by the Financial Conduct Authority. 7