SeedInvest is a technology platform that enables equity-based accredited investor crowdfunding. SeedInvest was founded by professional investors involved in the passage of the 2012 Jobs Act.
Investments are only available to accredited investors at this time. In order to view and invest in any of the companies listed on the site, each user must identify specific information about themselves and specify which of the accredited investor requirements he/she meets. When making an investment, each investor must again represent and warrant that they are an accredited investor. Accredited investors must meet one of the following requirements:
- Have individual net worth, or joint net worth with your spouse, exceeding $1 million
- Have income exceeding $200,000 in each of the past 2 years and expect the same this year
- Have income (with your spouse) exceeding $300,000 in each of the past 2 years and expect the same this year
- Invest on behalf of a VC firm or other registered investment company
- Invest on behalf of a business with $5 million in assets or in which all the equity owners are accredited
No, there are absolutely no fees for accredited investors to access the site and communicate with companies.
- SeedInvest does not charge investors to use its site
- Easily view and gain access to investment opportunities
- Seamlessly make an investment with just a few clicks
- Use automated accredited investor verification tools, designed to maintain your privacy
- Complete a streamlined due diligence process using proprietary online tools
- Collaborate and partner with other investors on the platform
- Easily track and manage your assets through the investment dashboard
- Simplify and speed up your fundraising process
- Promote your company broadly through fully-integrated social media & advertising tools
- Access a network of accredited investors from around the world
- Hold virtual due diligence sessions and board meetings from your desk
- Streamline due diligence, execution of legal documents, and processing investments for quicker and easier closings
- Efficiently manage and interact with your shareholders through our Virtual Boardroom
Currently we are focused on accredited investors only and all offerings are permitted through an existing exemption, Rule 506 of Regulation D. Companies have been raising capital through this exemption for years and are permitted to do so independent of the new rules outlined in Titles II and III of the JOBS Act.
On September 23, Title II of the JOBS Act will kick in and will, for the first time, empower companies to utilize the full power of the Internet and social media to raise capital. Companies will be able to generally solicit (advertise) to investors through social media, online advertising, the press, and any other medium. SeedInvest built its platform based on these sweeping changes in securities laws to make fundraising simpler for entrepreneurs. Companies will still only be able to raise capital from accredited investors.
In 2014, Title III of the JOBS Act will kick in. At that point, entrepreneurs will be able to raise capital on SeedInvest from non-accredited investors as well (the 98% of America that cannot currently invest in private businesses).
Regardless of the scope of your endeavor, our expectation is that you have dedicated the time and effort to researching, validating and executing your ideas. Investors on SeedInvest are typically not interested in financing ideas or projects, but in companies and businesses. Therefore, we recommend that companies meet the following minimum requirements:
- At least a minimum viable product or prototype
- Some proof of concept (includes customer traction or partnerships)
- At least two full-time team members
- A business which has already been incorporated in the United States
There is no typical company on SeedInvest but companies which have been successful thus far have shared the following characteristics:
- Technology and consumer-facing businesses
- Startups raising between $100,000 - $1,500,000 in aggregate (including offline)
- Companies looking to raise Seed Rounds, Series A Rounds and Bridge Rounds
- Companies which already have initial funding traction and terms
In order to protect investors, SeedInvest requires companies to reach a minimum funding target in order to have a successful fundraise. Therefore, investments are not final until the company raises enough money to meet its funding target. When investments are initiated, the money is held securely in an independent escrow account. Once the funding target has been met, the money will be released to the company and investors become shareholders. If the funding target is not met, investments will be returned promptly by the escrow agent. Neither SeedInvest nor North Capital ever receives or holds any investor funds during the process.
The amount you are investing will be released to the issuer once the issuer reaches its minimum investment target. If the issuer does not reach its target, your investment will be promptly returned to you.
There is no charge to be listed on SeedInvest or to utilize our basic feature set:
Basic Package (FREE):
- Be published as a Prospect on the portal
- Build and track investor interest through advanced tracking features
- Manage file sharing with a customizable, state-of-the-art data room
- Host live, online video due diligence sessions with potential investors
- Spread the word with social sharing and online advertising toolkit
- Get listed for a rapidly growing network of accredited investors
Advanced Package ($250/month):
- Launch your Fundraise on the portal
- Connect with our accredited investor network about your company
- Leverage our patent-pending online accreditation verification tools
- Automate compliance with new, pending Regulation D requirements
- Accept online investments (investors execute legal documents and fund investments)
If your raise is successful, we will pass along our direct costs for setting up a third-party escrow account. In addition, if you elect to have all investments pooled into a fund, we will also pass along our direct costs for setting up the fund. If your raise is successful, you will have the option of subscribing to our ongoing package:
Ongoing Package ($150/month):
- Streamline reporting to shareholders through Virtual Boardroom
- Manage shareholders through our online shareholder interaction suite
- Automate LLC compliance (pooled deals only)
Companies who raise funds on SeedInvest through our partner broker-dealer, North Capital Private Securities Corporation, will pay a small commission to North Capital if their investment round successfully closes.