How does Crowdfunding work for entrepreneurs? Here are some of the most common questions investors ask when it comes to fundraising and raising capital for their business.
We currently have 166,663 investors on our network made up of angel investors, family offices and venture funds; as well as everyday investors looking to follow the lead of top investors.
If you're looking for funding and you're looking to give a return on investment then you’re suitable. Our investors look at all stages of business and across all sectors from genuine start-ups to more established businesses. We only showcase the very best businesses so your application will be subjected to a rigorous screening process before it is accepted or rejected.
We currently have 166,663 investors in our database. We encourage you, the entrepreneur, to share the proposal with your network too. If your idea catches on there's no limit to how many people may see it. We also offer to run Google and Facebook ad campaigns for you.
Yes, proposals can be edited at any time. We actively encourage you to update it with your latest progress and traction. Any updates you make will be subjected to review by our team; you should ensure that any claims you make are 100% accurate to conform to FCA regulation.
Yes, we recommend that business plans, pitch decks etc are uploaded in the Documents section of your proposal. Please ensure that any claims you make are 100% accurate to conform to FCA regulation.
When you've reached your funding target, your investors will be notified and, once all the paperwork is signed, the funds will be transferred to your company account.
First you need to sign up - please select 'Everyday Investor' when asked for your investor type. This will allow you to look at our current proposals for inspiration. You’ll then be able to submit a proposal using our simple online form.
There are guidelines in the proposal form about what to include in each section and tips to help guide you through the process. If your application is accepted a member of our team will be on hand to help you fine tune your proposal.
We charge entrepreneurs 5% of the funds raised at the end of the round.
SeedTribe is only suitable for UK registered companies. If your company is based outside the UK then we would recommend our partner site Angel Investment Network to look for funding.
SeedTribe Limited is authorised and regulated by the Financial Conduct Authority (No. 695526). You can see full details of our authorisation and permissions on the FCA Register. The Financial Conduct Authority (FCA) is an independent non-governmental body, given statutory powers by the Financial Services and Markets Act 2000. They are an independent organisation responsible for regulating financial services in the UK and set the standards that they must meet and can take action against firms if they fail to meet the required standards.
The total funding required is whatever amount you judge necessary to reach the next steps in the growth of your company, based on your projections, costs and other key information you have considered. Be realistic about what you can achieve:
Investment amount and funding round sizes vary depending on your needs and desires. Think carefully about the amount needed: it should be small enough for you to confidently achieve your target, but large enough that you can get a decent run rate to grow your company to the next stage.
It can take anywhere from a couple of days to a few weeks to launch your proposal depending on how well prepared you are. We allow pitches to run for a maximum of 60 days, but our pitches normally complete their round well before this. Once the target is reached, it takes around 6 weeks for all the legal work to be completed and the funds to be transferred to you.
You have a maximum of 60 days to reach your funding target, but our pitches normally complete their round well before this.
Once registered you need to submit a pitch application following the instructions on our simple online form. If your application is approved you'll be taken through our stringent due diligence process before launch. You will then go live on our site and be shown to our investor base with a maximum of 60 days to reach your funding target.
In accordance with FCA regulation, we are only able to provide funding for legally registered UK companies.
After launch you can increase the equity on offer, but you may not decrease it.
EIS and SEIS are generous tax breaks offered to investors in UK companies that qualify. You can find a detailed explanation of them here. We recommend that you seek advance assurance from HMRC as this will make your proposition even more attractive. For more information check out our guide: http://www.seedtribe.com/seis-eis-tax-breaks
Yes, our nominee structure does not affect your eligibility for EIS and SEIS; and will save you time and money on legal fees.
After we have approved your application, we will send you a tailored and comprehensive questionnaire to help you verify all your claims. Once complete, this will be published as one the documents on your pitch so that prospective investors can download and view it.
All the claims you make in your pitch, documents and updates must be fully referenced using an independent source that can be verified by a third party. For example, if you claim a partnership with Apple you need to provide substantive proof of this. Also your pitch cannot make exaggerated claims that may not be true. For instance, if you say that you are the ‘best SaaS marketing company’, you are in breach of the rules – as it cannot be substantively proved that you are the ‘best’. Therefore, as a rule of thumb, avoid using superlatives.
Yes, as well as being asked to set on funding target on our form, you will also be asked to set an upper funding target. We advise this is at least 10% more than your target amount in case investors drop out at the end of the raise.
SeedTribe does not sign NDAs with companies. Crowdfunding is a public way of seeking investment – you will need to publicise your pitch in order to generate interest. If there is some sensitive information you do not want shared publically, as long as we can see and verify it internally, we can agree that it needn't be disclosed to the prospective investors provided that they can still make an informed investment decision. Anything you share with us in this way will be treated with complete confidentiality.
Contact us by email: firstname.lastname@example.org
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