The incubator revealed that after its first two successful Seedrs initiatives, the first cohort of ten companies completed their program March 2014 and second in July 2014. The campaigns were structured as “funds,” which reportedly offered individuals to participate in a portfolio of small companies which are carefully selected by the incubator creating a diversified approach with a single investment. The third Seedrs campaign went directly to WebStart, and the funds were invested in five new startups over the past year in exchange for 10% equity stakes.
Founder and chief executive of WebStart Bristol, Mike Jackson stated since January 2014, the company has provided 24 app and web service companies with workspace tech support. Only nine have failed, six have yet to raise, and another nine have raised further investment and increased valuations. He noted that three startups, Duel, Wriggle, and Zenstores, have raised the most money with WebStart Bristol. The three have a combined post-money valuation of £6 million.
“Sure, some will fall by the wayside but if only one goes on to achieve the rapid success others have seen, then the returns could be high.”
As previously reported, Jackson, an entrepreneur himself, sold his company and moved to Bristol in 2005. While reading an article about famed Silicon Valley incubator Y-Combinator, Jackson decided to create a similar type structure to help build tomorrow’s next big tech success in the UK.
WebStart revealed half of the £50,000 would go towards start-ups through pre-emption and follow-on rounds, and the other half will be spent on general expenses to support the startups over the next year. The campaign is set to close mid-September.
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