Absolutely It is nothing like the institutional grade due diligence a VC firm might do, - just bog-standard declaration of outstanding debt, background checks, etc. So if you have some skeletons in your closet I wouldn’t worry
IMO, due diligence should ultimately be down to the investor (And i do my own research on top, as i believe one must), but when you consider the high fixed-costs of due diligence on early stage Cos - it puts a typical ‘crowd’ investor (<£10k investment) at a disadvantage, hence the justification for due diligence at the platform level
Seedrs have a less controversial hisory when it comes to due diligence, but I I must say i find crowdcube quite transparent- they email a legal review and articles of association to you prior to capturing funds.
Out of interest, are you leaning towards crowdfunding after all? I’d be more than happy to rally up some would-be investors in the run up to the campaign not that you’ll need my help mind you haha
Hi there - I’d be happy to invite you over to Seedrs to give you the inside on how it works from our perspective. We think our platform is quite different for the others available but I’d love to show you why and gather your feedback. If you could reach out via our support channel or email (support@seedrs.com) and ask for Joel (I’m CPO here), I’d be happy to show you around. Rgs, Joel
Crowdfunding is good for several reasons. Primarily it engages your user base to make them a hyper fan. I am already a fan of Emma. I spread the word talk to people get them to do it. Send referrals through the system. BUT when people are invested in the future of a business literally. It makes them a hyper fan. Furthermore if you cap the investment to 2000 then it helps give many people the option to invest in the company. The money is a bonas but deffinitly not the primary aim of crowdfunding - in my opinion.
I have invested small quantities in curve, Freetrade, monzo, lucky trip, and a few others mainly on the principle of spreading my bets. But it’s made me talk about them with freinds more and got people interested. Get people selling your own product.
For you as a CEO, what would you say the Pros and Cons at VC Funding VS Crowdfunding ? Not to be Bias but I’d think you guys would do great specially if you dip your toes in Seedrs, get instant access to the Secondary Market