Enter your name and email address to unlock access to startups and make investments seamlessly online.
In order to determine what you are able to invest in, we need to first determine whether you are an Accredited Investor or a Non-Accredited Investor.
An "Accredited Investor" is defined by the Securities and Exchange Commission as someone who meets at least one of the following requirements:
- Individual net worth, or joint net worth with your spouse exceeding $1 million (excluding the value of one's primary residence)
- Income exceeding $200,000 in each of the past two years and expects the same this year
- Income (with your spouse) exceeding $300,000 in each of the past two years and expects the same this year
- Any entity in which all of the equity owners are Accredited Investors
- Invests on behalf of a VC firm or other registered investment company
- Invests on behalf of a business with $5 million in assets and which was not formed for the specific purpose of acquiring the securities offered
A "Non-Accredited Investor" is any individual or entity that does not meet the definition of an Accredited Investor.
Non-Accredited Investors are able to indicate investment interest in companies testing the waters for a potential future offering under Regulation A, and invest in those companies that later choose to proceed with an Offering under Regulation A or Regulation CF. Only Accredited Investors can make investments in Offerings under Rule 506(b) and 506(c) of Regulation D.
We will ask questions during your onboarding process to help customize your SeedInvest experience according the preferences you indicate.
Customize your investment goals by telling us how much you have put aside to invest and what portion of that you would like to invest in startups.
You should only invest amounts that you are willing to lose in its entirety. Startups are highly risky and illiquid investments, and there is a real risk that investors in startups will lose the entire principal amount. Due to the high-risk nature of startup investing, diversification is a commonly used technique used by investors try to mitigate risk. You should consider diversifying across multiple startups as well as diversifying across different industries, depending on your individual preferences and risk tolerance. There may also be limits set forth by the SEC on the amount you can invest in depending on various factors as determined in relevant regulations.
Explore all of our investment opportunities on the offerings page.
We strive to feature a broad assortment of companies on SeedInvest in order to appeal to our entire investor network. Once you find something that interests you, you may continue on to the company's profile to learn more or participate in conversions with other investors and the startups’ founders in areas available for discussion.
Our venture team actively sources deal flows in three different ways:
- Referrals from venture capital funds, incubators, accelerators, and angel groups.
- Our venture team is dedicated to keeping a pulse on venture activity and establishing relationships with companies we've identified as trending.
- Organic - we are fortunate that many companies hear about SeedInvest through word of mouth and apply directly online.
All Regulation D and A+ offerings are marked as "Vetted" have successfully gone through our complete due diligence process, which includes internal business due diligence and outsourced legal and confirmatory due diligence. Such investment opportunities are offered via SI Securities, a registered broker-dealer. Investment opportunities offered under Regulation CF have not been fully vetted and offered via SI Portal, a registered crowdfunding portal. Such investment opportunities have gone through a screening process with SI Portal and have gone through legal and confirmation due diligence processes.
- Legal and confirmatory review includes:
- The organization of the company
- The corporate structure and ownership
- The people behind the company
- Information provided to investors
- Investor information and terms of the offering
- Review of Transaction Documents by Outside Legal Counsel
- Problem or inefficiency being addressed
- Product / service overview, stage of development and anticipated milestones
- Demonstrated traction (e.g. revenue, pre-sales, purchase orders, signed contracts, media coverage, awards, etc.)
- Data to support claims made in marketing materials (e.g. user / customer metrics, signed contracts and agreements, product demonstrations, etc.)
- Growth strategy
- Employees and advisors (including ownership structure)
- Addressable market (e.g. size, growth, penetration, etc.)
- Competitive landscape and industry dynamics
- Exit opportunities
- Intellectual property
- Historical financials
- Financial projections (including error-checking, evaluation of key assumptions and reconciliation to stated growth plan)
- Reference checks (e.g. previous investors, advisors, etc.)
- Investment overview (including determination of key terms, uses of funds, and current and previous investors)
Investing in startups is inherently risky. It is important for you to do your own independent due diligence to mitigate those risks.
Take a closer look at the companies that you're interested in. Get to know the companies by leveraging the SeedInvest team and connect with the companies' founding team members. Take a deeper dive into the due diligence materials uploaded to the data room or offering circulars.
Due diligence is an investigation into a business for the purpose of being able to make an informed investment decision.
- Get to know the company you are looking to invest in by viewing their investor deck, any financial documentation, and term sheet.
- Connect and communicate with the founding team members.
- Understand the industries and marketplace in which the company is positioned.
- Do research about the company outside of the SeedInvest platform.
- Share the deal with your colleagues and get outside opinions. Feedback is valuable, but also remember that you're the one writing the check.
When available, investors may directly message the company by visiting the company's profile page. Investors may also participate in conference calls and in-person events scheduled by SeedInvest. Note that for Regulation CF companies, all communication must occur on the SeedInvest platform so others can leverage each others’ insights and opinions. There is a discussion board on each company’s profile pages to facilitate this for the crowd.
Click the "INVEST" button on the startup's profile page and follow the steps to complete your investment.
You can invest as an individual or through an entity (such as LLCs, IRAs, or Trusts).
- Click the "Invest" button on a given company's profile.
- Enter your investment amount.
- Verify your identity and accreditation status.
- Enter the account information of your bank account (checking or savings) or choose to wire the funds.
- Confirm your investment.
- Complete any follow-ups in the case of missing information or special circumstances.
Once you confirm your investment, the funds will be transferred to an escrow account for safe-keeping until the fundraising is closed. Once the fundraising round closes, you will receive confirmation of success and a link to the counter-signed legal agreements if applicable. Upon the completion of certain closing mechanics and compliance checks, the funds will be transferred to the startup.
Making your first investment is just the beginning of building a portfolio of private company investments on SeedInvest.
Many investors practice portfolio diversification and invest across multiple (10, 15, or more) startups and industries to mitigate risk. Keep an eye out for companies in different industries and come up with a plan for adding additional investments over time.
Also, stay up-to-date by returning to SeedInvest to read updates from your portfolio companies.
You can view a list of all of your investments on your portfolio page as well as access your final investment documents on this page.
SeedInvest is currently building out reporting tools which will streamline company reporting and shareholder tracking.
Investing in private companies is different than investing in public stocks:
- Startup investing can be a very rewarding activity but it is also a very risky one. Some investors like to invest in things that they have expertise in and most investors practice portfolio diversification and invest across multiple private companies to try and mitigate risk. Investors should never consider investing in solely one or two private companies.
- It is critical to allocate only a small percentage of your overall portfolio to private companies, typically no more than 5-10%. Investors should be mindful of future diversification as they consider how much to invest per company.