by Steve O’Hear, It doesn’t get much more meta than this. Seedrs, the UK equity-based crowdfunding platform, is listing itself on its site in a bid to crowd-raise £500,000 for international expansion.
Armchair investors who put in for a slice of the action will in total get a 8.81 percent stake. This gives the 2009-founded company a pre-money valuation of £5.175 million.
At the same time, Seedrs is announcing that it’s opening up to European investors and startups beyond the UK, giving rise to the claim of being the first “cross-border” equity crowdfunding platform.
“National boundaries become artificial when you move online, and the notion that a Brit should only be able to invest in British startups, a German in German startups and an Estonian in Estonian startups seems silly,” says Seedrs co-founder and CEO Jeff Lynn.
“Our goal is to open startup investing as widely as we can, and a key part of that is about exposing investors to dealflow wherever it’s located, and giving startups access to capital wherever it’s located”.
However, Lynn concedes that equity-based crowdfunding platforms like Seedrs rely heavily on ‘network effects’. The deeper the pool of investors attracted to the platform, the more value that is created for entrepreneurs. Conversely, the more dealflow provided by Seedrs, the more value it creates for investors.