REMIX SUMMIT- Alysia Wanczyk, Marketing Director, Seedrs


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REMIX Day 2-Crowd Funding- Alysia Wanczyk, Marketing Director, Seedrs

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REMIX SUMMIT- Alysia Wanczyk, Marketing Director, Seedrs

  1. 1. Harnessing the Power of the Crowd Alysia Wanczyk Marketing Director
  2. 2. Intro to Crowdfunding • 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 Circle 2. Rewards-based crowdfunding like Kickstarter 3. Crowdfund investing (equity-based crowdfunding) @seedrs
  3. 3. Problem #1 Entrepreneurs lack access to idea-stage capital. So, many great businesses don’t get off the ground. 1 2 3 Too small an amount for most institutional investors Too early (risky) for most angels Too much for nonwealthy friends and family @seedrs
  4. 4. Problem #2 Investing in new businesses appeals to many people. But most lack the opportunity to do so. 1 Often limited to highnet-worth individuals as minimum investments tend to be £10K or more 2 3 And, it can take months So, investing in startups of work for legal is limited to the handful paperwork to be (top 1%) of us who have processed access to this kind of capital and free time @seedrs
  5. 5. The Solution Seedrs is an online platform for discovering and investing in great startups. 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) @seedrs
  6. 6. How Seedrs Works Entrepreneur Creates Campaign 1 Info about business (which we review) 2 1 3 1 Amount of money Percentage of equity sought (all-or-nothing) (take-it-or-leave-it) @seedrs
  7. 7. How Seedrs Works Investors Review and Invest 1 1 2 1 3 1 All payments and documentation are online Can participate in Q&A or reach out to entrepreneur offline Invest in campaigns you choose @seedrs
  8. 8. How Seedrs Works Seedrs Manages Transaction 1 1 2 1 3 1 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) @seedrs
  9. 9. How Seedrs Works Entrepreneur Grows The Businesses 1 1 1 2 3 1 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 @seedrs
  10. 10. How Seedrs Works Investors Get Information, Involvement and Returns 1 1 1 2 3 1 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) @seedrs
  11. 11. Some Stats So Far >£4.7 million raised (£2.25 million just this month!) Eighteen thousand investors and growing fast 600% annualised growth rate 51 deals 16 Months since launch @seedrs
  12. 12. Recent Creative Success EVOCHA 30 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. @seedrs
  13. 13. Recent Creative Success HAPPY DAYS 10 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 @seedrs
  14. 14. Learnings from Creative Campaigns 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 @seedrs