UK based Equity Crowdfunding platform Seedrs has announced hitting their first £1 Million milestone after only 9 months. This amount represents capital raised for 21 UK based start-ups. The platform has ramped up quickly with the bulk of funds, £700,000, being raised in the past three months.
Seedrs noted the investments represented a diverse portfolio of companies including internet security, manufacturing, digital tech, fashion and mobile apps. A Northern Ireland start-up, Mikes Fancy Cheese, pushed them over the £1 Million mark by completing their £80,000 equity round which represented a 40% equity position in the company.
Seedrs has stated that “a vast number of entrepreneurs need £150,000 or less to take their “first step” before launching or seeking later-stage capital. Venture capitalists don’t invest that small and angels rarely invest that early, so unless the entrepreneur has a few very wealthy friends or family members, raising this money is difficult at best and often impossible. It is due to lack of this capital that many potentially great businesses never get off the ground.”
Seedrs is one of the first regulated equity crowdfunding platforms in the United Kingdom. The Financial Conduct Authority (FCA) is the regulatory entity in the UK,which was preceded by the Financial Service Authority which was abolished on April 1st, 2013.
The United Kingdom has moved forward with allowing equity crowdfunding where as the United States has been experienced delays due to politics and regulatory inertia.