Based out of London, Microco.sm provides a portal that discussion forums, bulletin boards and communities. CEO David Kitchen describes his portal as the social media portal for the introverted community, inverting the notion of Facebook. They are scheduled to go love in mid January next year. Building upon his untraditional past, David is a true inspiration of rags to riches in the making. Years ago David was living on the streets of London. Turing his life around, he returned to school and landed jobs programing for Merrill Lynch, the British government, and Microsoft.
Microco.sm chose to use Seeders due to the desire of their promised investors and the ease that it provided. Seeders acts as a holding company through its investors and is treated as a single investor to a particular business. The first campaign had a threshold £ 50,000 with 10 percent equity and was met only 15 hours later. 90 percent of the investors were users of David’s prototype. Their second campaign contained a threshold of £ 100,000 with 5 percent equity, quadruple the price per share, and was met with in 2.5 hours with 95 percent being users of the prototype. David explains that his success can be attributed to emotional means of investors who believe in him and his product. Microco.sm is now estimated to be worth £ 2 million.
Soon after their first campaign, several angel investors and venture capital firms approached Microco.sm. David explained how it proved to be a difficult task to work with venture capital (VC) firms so quickly after the inception of the company. Deciding to continue on to a second and even more successful campaign, Microco.sm was then approached by many of the A grade VC firms of the United Kingdom. Out of the many firms that approached David, only one saw concern with the amount of investors, but was quickly relieved when it was noted they would be working with one other legal shareholder, Seeders.
Source: Matthew Modawell – Research Analyst – Crowdfund Capital Advisors, LLC