Equity crowdfunding platform Seedrs raises £4m with pre-money valuation of £40m
The Startups 100-ranked business will use the fresh funds to build sales and marketing efforts and launch a set of strategic partnerships
Equity crowdfunding platform Seedrs has raised £4m in a funding round led by Neil Woodford Funds.
Now valued at £40m, on a fully-diluted, pre-money basis, Seedrs’ share price has increased 27.2% from its last fundraising round in mid-2015 – and 135.9% from late 2013.
Taking Woodford’s total investment in the platform to £10m, Seedrs will also conduct a crowdfunding campaign to give existing shareholders and new investors the opportunity to participate.
Founded by Jeff Lynn and Carlos Silva in May 2009 and launching just over three years later, the Startups 100-ranked business will use the fresh funds to build sales and marketing efforts, launch a set of strategic partnerships, and scale campaign execution via use of automation, machine learning, and AI.
In March, the London-based start-up announced a number of recruitment measures and senior hires ahead of “a major ramp-up of activity”.
Jeff Kelisky, formerly CEO of image capture business Picsolve, was recruited as COO to oversee day-to-day operations at Seedrs, while Ricardo Brízido, formerly CTO of online beauty firm LIB Group, was appointed as CTO to lead all aspects of its technology strategy and operations.
An ever increasing form of finance for start-ups, crowdfunding was responsible for £47m worth of investments into UK high-growth businesses in Q1 of this year alone, with 35 of the total 82 investment rounds going through Seedrs, which amounted to £23m – more than rivals Crowdcube’s 29 deals worth just £9.3m.
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“We are thrilled to have Woodford leading the round with £4m, taking their total investment into Seedrs to £10m. The capital we are raising will allow us to deliver our next stage of growth.
“Equally important to everyone at Seedrs was gaining agreement that we could open up an amount for the crowd.
“We already have nearly 1,000 crowd investors following raises in 2013 and 2015 and many investors were disappointed to miss out on our last round.”