How do I invest through Crowdfunding? Here are some of the most common questions investors ask when it comes to investing in start-ups.
We currently have 79,500 members around the world, but this number is growing fast.
The total funding required is an estimate entered by the entrepreneur. The funding is only held as a pledge until the entire round is full at which point the funds are transferred to the entrepreneur. If they do not meet the required amount then your funds are held in the GCEN account until you want to pledge them again or retrieve them.
Entrepreneurs may decide to extend their funding round. Is there a maximum/minimum investment? Ticket and funding round sizes vary depending on the needs and desires of the entrepreneur we have clients looking to raise funds ranging from a few thousand pounds to several million and you can invest from as little as a few hundred pounds.
Our service is free to investors to use, we take a fee only on a successful exit of 7.5% of any profit you should make from the sale of your shares.
We do not share your name or contact information with anyone except entrepreneurs you choose to connect with. Connections with entrepreneurs are made completely on your terms so your details are private until you decide to connect with a particular entrepreneur.
Entrepreneurs have a maximum of 60 days to reach their funding target, but they normally close well before this.
When you see a proposal that you find interesting, click ‘Follow’ to receive updates on the fundraise and how their business is going. You can also ask the entrepreneurs a question through their fundraising page.
Entrepreneurs are likely to prioritise investors with the most professional looking profiles, so make sure you’ve filled in all the relevant sections. Imagine yourself as the entrepreneur and what would impress you in their position. Another way is to send the entrepreneur a personal message when you express interest in their proposal
Yes, any investment is processed through the site and we then hold the shares for you in a Nominee structure, which means we carry out all the legal requirements for you. Should you wish to invest over £10,000 you can contact us and we can arrange for the transaction to be done not through the site and you can become an individual shareholder should you wish.
Once you are registered and have found a business you like. Click 'Invest' and enter the amount you would like to invest. You can pay by via credit or debit card or bank transfer. Your payment will be held in a GCEN account until the round closes.
Investing in startups is a risky proposition and should only be undertaken after due consideration of the potential downsides as well as the upsides. There is no security for your investment so if the company flops you are liable to lose your money. SEIS and EIS tax breaks mitigate your risk, but it’s important to be aware that any capital you invest is at risk.
You can make a return when a company you have invested in ‘exits’ in the future. An exit can be a trade sale, an IPO or a share buyback. Each company will have its own ideas on how it will achieve an ‘exit’ so make sure you check it with them.
No. Companies you invest in will be displayed on your profile, but your amount will remain private.
The Enterprise Investment Scheme and Seed Enterprise Investment Scheme are generous tax breaks which the UK offer for investment into early stage companies. Please see our SEIS/EIS guide for more information (http://www.seedtribe.com/seis-eis-tax-breaks). Please note: you should check with company that they qualify for the tax breaks before investing.
Under the terms of the scheme, a business is required to meet certain requirements before they can submit SEIS forms to HMRC. Under the current terms SEIS companies are required to wait for a period of four months OR until they have spent 70% of the funds raised, before they may submit forms to HMRC. Once these forms have been processed by HMRC, they will be sent out to investors. Under the terms of the scheme a business is required to meet certain requirements before they can submit EIS forms to HMRC. Under the current terms EIS companies will need to wait for a period of four months before they can submit their forms. Once these forms have been processed by HMRC they will be sent out to investors. In total, this process can take around 6 months from the date that you receive your share certificate to completion.
Yes the nominee structure in no way affects your entitlement to SEIS/EIS when you invest.
‘Anti-money laundering’ and ‘know your customer’ checks are designed to verify the identity of investors to protect the investee company. The checks are mostly carried out from publicly available information, but you may be emailed asking for proof of identity. Following FCA regulation, SeedTribe is required to provide appropriate identity evidence for investors when transactions take place. This is to prove that all investors seeking to invest in a business via SeedTribe are who they say they are.
You can cancel your investment at any time. And when the funding closes you will be emailed reminding you to pull out if your circumstances have changed.
You can submit questions to the entrepreneurs through their pitch page. You can also arrange to meet them or drop in on a webinar or meet and greet session.
Most of the company’s documents will be available to download from their pitch page, but there is also a button allowing you to request documents.
When the company reaches its fundraising target, you will receive an email notifying you. You will then have 48 hours to withdraw your investment if you want to. If you take no action, the funds you pledged will be transferred to the company.
We hold the shares for you in a Nominee structure, which means we carry out all the legal requirements for you. Should you wish to invest over £10,000 you can contact us and we can arrange for the transaction to be done not through the site and you can become an individual shareholder should you wish.
Any company you invest in through SeedTribe is obliged to give updates at least biannually (although they will probably update you more frequently). These reports will appear in your dashboard to help you keep up to date with any progress and how you can help or get involved.
This platform is designed to be used by everyday investors, sophisticated investors or investment professionals. Please check the registration page for more details and make sure you sign up as the correct investor type.
Can I use this network if I'm not based in the UK?
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.
Login to your account and click on ‘My Profile’, you can go to email settings to turn off or change the frequency. You can also change the type of email you receive through clicking on investment criteria.
Contact us by email: firstname.lastname@example.org
You have passed the test and you may continue your with your investment.