remix summit- alysia wanczyk, marketing director, seedrs
DESCRIPTION
REMIX Day 2-Crowd Funding- Alysia Wanczyk, Marketing Director, SeedrsTRANSCRIPT
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
1 2 3
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
111 12 13
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
11 12 13
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
11 12 13
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
111 12 13
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
111 12 13
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