Mr Faulkner continues: “previously, it was almost impossible for US startups to raise money from anything but a small group of people, so this allows people to expand their potential investment networks, and allows startups access to more funds. It also allows people to become their own Dragons: unlocking the potential of many who want to make investments, but feel they lack the necessary finance and expertise.
Seedups’ fundraising model has attracted nearly 1000 entrepreneurs since being launched in February 2011. The fledgling companies have been attracted by the growing investor pool, which stands at over £27 million. Investors have been attracted to the wide range of opportunities, from a variety of tech based industries. With new startups listing every week, it allows investors to spread their investments over a few different opportunities, spreading risk and diversifying their portfolio.
The firm’s innovative valuation process allows investors to address a problem which has long been debated: namely valuing the startups. By using “wisdom of crowd”methodology, Seedups users value startups as they bid to gain access to deals. Seedups ensures that the best deal possible is presented to startups, who can choose to accept or reject the bid.
Startups are the backbone of the economy in the USA, with most new job creating coming from early stage companies. The crowdfunding equity market is estimated to be worth $2billion a year, and the change in the law is aimed at helping kick-start the economy, releasing funds that were previously unavailable to startups, giving investors a range of new opportunities and chance to become involved more closely with the economic development and startup landscape. To see how important early-stage businesses are to the US economy, look at this research done by the Kauffman Organistaion.
Seedups is committed to helping tech-entrepreneurs across Northern Ireland, the UK and Ireland move their ideas from the planning stages to fruition. The current funding model is broken for startups, with many great ideas failing to get off the blueprint stage, as they are too high risk for banks, and too small for the venture capitalists. Using crowdfunding they can get seed money and develop quickly.
If you have a tech-startup that needs crowdfunding, or want to gain access to this growing pool of investment opportunities, please visit www.seedups.com for more information. or follow us on twitter or Facebook.