Tag Archives: Investors

Top venture capitalists talk about why they’re investing in PeerIndex on Seedrs

PI

PeerIndex is a multi award-winning big data startup that is raising capital on Seedrs.

This is an example of a new sort of Seedrs campaign, where individual investors have the chance to invest alongside top venture capitalists. VCs Meridian Venture Partners and Anthemis Group are both investing in PeerIndex’s campaign.

Here’s what Mitch Pender (Meridian) and Sean Park (Anthemis) had to say about why they’re investing in PeerIndex and why other Seedrs investors may find it interesting as well:

Mitch Pender (Partner, Meridian Venture Partners)

Mitch held senior roles in a number of successful entrepreneurial technology businesses before becoming a venture capitalist. Here’s what he had to say about why Meridian is investing in PeerIndex:

Sean Park (Anthemis Group)

Sean is one of the most well-regarded and colourful investors in the European venture capital world. He began his career in investment banking and was an early investor in such successful businesses as Betfair and Zoopla. Here’s what he had to say about why Anthemis is investing in PeerIndex:

“Anthemis Group was an early investor in PeerIndex. We’re excited about the platform they have built and are pleased to see their vision gain traction in the marketplace as more and more businesses understand the value of social data analytics and the unique value proposition of PiQ.  “Big Data”, “data exhaust”, “social data” are buzzwords that have captured the public’s attention in the past couple of years, but actually building tools that can make these data resources useful is not trivial. Azeem and his team at PeerIndex have been amongst the few who have been able to cut through the hype and actually build analytical tools that drive real, positive outcomes for their clients.

Looking ahead, while the social data analytics and sales & marketing support markets that are the focus of PiQ are vast, we believe there are a number of interesting potential future use cases for the PeerIndex social data stack, including in areas such as identity, KYC and even credit scoring. While these are not currently the focus of the business, they represent interesting upside options for future development or licensing of PeerIndex technology.

Finally, when investing in startups, our experience has taught us that the single most important (controllable) factor in determining success is the quality and character of the founders. In the years we have been working with Azeem, he has proven himself over and over again to have the vision, grit and perseverance to guide and grow PeerIndex through all the challenges they have faced. We are excited about the Seedrs campaign and look forward to welcoming the new investors into the company.”

To view the PeerIndex campaign, please click here.

Protecting small investors in equity crowdfunding rounds

People invest on Seedrs for many reasons. To support friends or family, because they love a particular business idea, or they just want to invest in a new asset class. But one thing that our investors have in common is that if the company they invest in is successful, they want to share in that success.

Investor Protection

In traditional forms of financing, large professional investors will agree terms with a company to prevent their investment from being diluted when the company issues more shares, and to ensure they benefit from share sale opportunities.  However, normally a small investor simply will not have the leverage to negotiate such terms.

Continue reading

Startup Investing Trends from YC Founder

Startup accelerators like Y Combinator (YC), TechStars and Wayra are increasingly releasing young, vibrant companies into the mainstream. Some say there are too many startups and not enough investors to support them.

But, in a recent essay aimed at startup investors, Y Combinator founder and successful startup investor, Paul Graham says there are plenty of reasons to be more optimistic about investing in startups.

Continue reading

Why dilution isn’t always a bad thing

One of the most misunderstood areas of early-stage investing is dilution. I receive lots of questions from investors about what dilution means for their investments and whether it is a bad thing.

Dilution is a natural part of the investment process and we see it as generally something to be embraced rather than feared. Sometimes predatory dilution can be used to take advantage of smaller shareholders, but the investor protections on Seedrs means that the dilution you see on a Seedrs investment is generally more likely to increase the value of your investment than to decrease it.

Continue reading

It isn’t nominal – Why a Nominee Structure is Vital in Equity Crowdfunding

One of the most important features of Seedrs is our nominee structure, whereby we hold and manage the shares of startups on behalf of the underlying investors after an investment is completed.

Equity Crowdfunding Nominee

Using a nominee structure makes equity crowdfunding easier to manage.

While it may seem like a technical point, this type of structure is actually essential to any equity crowdfunding model: it is necessary not only to enable startups to raise follow-on funding but also to ensure that investors’ interests are protected.

Continue reading

Feature News: Investor Referral Programme, Leedrs Club and Listing Presentation

We have just made three exciting improvements to Seedrs, and we wanted to share them with you.

Referral Programme: Cash-Back When You Refer New Investors
We’re extremely thankful to all of you who over the last few months have been sharing the gospel of Seedrs to your friends, family and colleagues, and we want to make sure you are properly rewarded when you bring new investors to the platform.

Continue reading

Ensuring investors are protected and receive EIS or SEIS tax relief

Once you have invested in an EIS/SEIS eligible company on Seedrs, you may now be wondering how on earth you can take advantage of these incredible tax breaks. We’ve had a number of people ask how they claim the relevant tax relief, and how we ensure that an investment made into a company which is labelled as EIS/SEIS eligible will be eligible for relief when the investment closes.

We have written this post to help explain the EIS/SEIS process and our stringent procedures that we have in place to ensure that any investment made through Seedrs will be eligible for relief, if a listing is labelled as EIS/SEIS eligible.

Continue reading

Finding synergy between investors and entrepreneurs

Looking around for the right investment fit for your needs is like going out on dates and can be as important as a marriage in the long-term. So, how do you know when an investment really is “Mr. or Ms. Right”? There are a few things to look out for to help you determine if you’ve found a great fit.

Continue reading

Do you need financial projections when raising startup capital?

None of the the startup campaigns on Seedrs include financial projections. This was a conscious choice by us when we built the platform, and I thought I’d take a moment to explain why we made that decision.

Financial projections are always speculative. Even for the most well-established companies, saying what will happen in the future involves a substantial amount of guesswork.

Continue reading

How to become an angel investor

Seedrs is about opening startup investing to a wider group of people than can currently access it—going beyond traditional angels and reaching the “mass affluent”. We think that sensible grown-ups should be able to allocate a reasonable proportion of their capital to businesses that they select and get the benefits of access to the possibly fantastic returns, excitement, portfolio diversity and tax reliefs that investing in startups provides.

Continue reading