Jeff Lynn - Seedrs - UK - Equity Crowdfunding in Europe - Stanford Engineering - Feb 10 2014
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Transcript of Jeff Lynn - Seedrs - UK - Equity Crowdfunding in Europe - Stanford Engineering - Feb 10 2014
Fuelling Great European Startups Jeff Lynn | CEO and Co-‐Founder Seedrs Stanford Engineering European Entrepreneurship & Innovation February 10 2014
About Me • CEO and Co-‐Founder of Seedrs • Non-‐Executive Director of
Companies House
• Founding Chairman of The Coalition for a Digital Economy
• Former M&A/securities lawyer with Sullivan & Cromwell LLP (New York and London)
The leading European platform for discovering and investing in great startups
Seedrs Overview Entrepreneurs can raise seed and early-‐stage investment from friends, family, angels and their communities.
Investors can invest from £10 up into the startups they choose.
We act as nominee to ensure investors are protected and entrepreneurs aren’t burdened with a huge cap table.
Our fees are success-‐based: 7.5% commission on funding, 7.5% carry on profit.
Our Activity • 65 deals to date
• £6.1M ($10M) raised though us
• £94K ($154K) avg. deal
• 24 avg. days to fund
• 115 avg. investors per deal
• £703 ($1,153) avg. investment
$0 $500,000
$1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 $4,500,000 $5,000,000
H2 2012
H1 2013
H2 2013
Net Investments
Case Study: Future Ad Labs Raised £60K ($98K) from 70 investors. Pioneering a new age of CAPTCHAs that are Engaging, Simple & Secure. Has since raised top-‐tier VC round.
Case Study: Mikes Fancy Cheese Raised £80K ($131K) from 98 investors.
Creating Northern Ireland’s first raw milk, artisanal, blue cheese for direct and wholesale distribution.
Case Study: Happy Days – A New Musical Raised £250K ($400K) from 336 investors. 26-‐week UK theatre tour for original musical. First major theatre production to raise online equity crowdfunding.
James Alexander -‐ Co-‐founder of first major peer-‐to-‐peer lending platform, Zopa Mike Butcher – Editor-‐at-‐Large of TechCrunch Dale Murray CBE -‐ Investor and entrepreneur , British Angel Investor of the Year (2011) Todd Ruppert -‐ Former CEO & President of T. Rowe Price Global Investment Services Ralph, Lord Lucas -‐ Member of the House of Lords
Our Advisory Board
Our Funding History • 2009-‐2011: £350K ($575K) in
pre-‐seed capital (before FSA authorisation) from friends, family and small angels
• 2012: £1.1M ($1.8M) in seed capital for launch from finance and tech angels
• 2013: £2.6M ($4.3M) crowd round after 18 months from 909 customers, angels and funds
Equity Crowdfunding Will Thrive In Europe • Growth in entrepreneurship
• Geographic dispersion (hubs)
• Global reach and mindset
• Characteristics of capital and investors
Timing Is Right For Entrepreneurship In Europe • Technology: High online and
mobile adoption.
• Economic: Financial crisis leading talented people to create their own value.
• Cultural: Successes being celebrated. Failure being embraced.
We Have Multiple Startup Hubs… • Dozens of tech clusters are
developing rapidly throughout the continent – each with their own unique fabric.
• Increased interconnectivity – “cluster of clusters”.
• Easy for entrepreneurs to travel and network with other hubs.
• More accelerators and support for
entrepreneurs.
…and Each Has its Unique Value • London – Fintech and media capital
of the world, favourable tax regime. • Stockholm – Thriving digital sector
and large population of early-‐adopters.
• Berlin – Affordable talent and real estate; high concentration of accelerator programmes.
• Barcelona – Climate, culture and universities draw global tech talent.
Small Countries with a Global Reach And Mindset “We didn’t think about one market — the world is our market.” Niklas Zennström, Skype co-‐founder
A Different Approach to Capital • Less intensive concentrations
of angel investors and high-‐net-‐worth individuals
• Significant mass affluent base of capital
• Regulatory environment more open to innovative forms of investing
Europe Is Ablaze With Great Startups…and Seedrs is Fuelling Their Growth [email protected] @jeffseedrs @seedrs seedrs.com