SEEDRS, the London-based equity crowdfunding service, is expanding its funding platform out to Europe following the success of rival service Kickstarter – which has raised $612m (£377m) in funding since 2009.
To fund the European rollout Seedrs is calling on its users to raise the £500,000 needed, in return for an 8.8 per cent stake in the business.
Unlike rewards-based services Kickstarter and Indiegogo, Seedrs allows investors to back businesses with as little as £10 and in return own a percentage stake in the future success of the company.
“We’re asking investors to back an exciting new way for people to take a stake in businesses they think are worthy of supporting – and to share in the upside if our vision of how successful crowdfunding can be proves correct,” said Seedrs chief executive Jeff Lynn.
Seedrs has successfully funded 48 companies in the 16 months since its launch. It is the first crowdfunding platform to receive regulatory approval from the Financial Conduct Authority.
Seedrs is currently financed with investment from DFJ Esprit, Digital Prophets as well as a number of angel investors.