Disclosures

  • SeedInvest’s due diligence process is no guarantee of success or future results. All investors should carefully review each investment opportunity and cancel their subscription within the allotted time-frame if they do not feel comfortable making any specific investment based on their own DD. Learn more about due diligence on the SeedInvest Blog (https://www.seedinvest.com/blog/angel-investing/how-to-assess-an-investment) and our vetting process in our FAQs (https://intercom.help/seedinvest/en/).

  • SeedInvest’s selection criteria does not suggest higher quality investment opportunities nor does it imply that investors will generate positive returns in investment opportunities on SeedInvest. Learn more about due diligence on the SeedInvest Blog (https://www.seedinvest.com/blog/angel-investing/how-to-assess-an-investment) and our vetting process in our FAQs (https://intercom.help/seedinvest/en/).

  • Diversification is only across multiple early-stage investment opportunities within the asset class. There is no guarantee that this program will lead to a well-balanced portfolio of companies across industry types or stages across the asset class. In addition, enrolling in this program will not lead to diversification across your entire investment portfolio. In order to achieve diversification, we do not recommend you allocate more than 10% of your entire investment portfolio to alternative assets.

  • Testimonials may not be representative of the experience of others and are no guarantee of future performance or success. No individuals were compensated in exchange for their testimonials.
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How it Works

We make investing in startups a seamless experience.

Invest on SeedInvest in six simple steps.

Step 1

Sign up & create your account

Getting started is as easy as entering your name and email address, then verifying your identity on the platform.

As a registered broker-dealer, SeedInvest is required to make sure investments are a good fit for our customers' portfolios, which means we need to do a bit of due diligence. Learn more about our investor suitability process, verifying your identity and how we secure sensitive information.

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Step 2

Verify your investment qualifications

While you do not need to be an Accredited Investor to invest through SeedInvest, we’re required to verify your accreditation status. It also helps us customize your deal flow.

Once the verification is complete, you can unlock access to vetted startups and start making investments online.

An "Accredited Investor" is defined by the Securities and Exchange Commission as someone who meets at least one of the following requirements:

  • Has an individual net worth, or joint net worth with your spouse exceeding $1 million (excluding the value of one's primary residence)
  • Has an income exceeding $200,000 (or $300,000 together with a spouse) in each of the past two years and expects the same this year
  • Holds in good standing a Series 7, 65 or 82 license
  • 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
  • Any entity in which all of the equity owners are Accredited Investors

A Non-Accredited or Retail Investor is any individual or entity that does not meet the definition of an Accredited Investor. Equity crowdfunding platforms like SeedInvest enable retail investors to access private investment opportunities.

Verify-qualifications
Step 3

Start browsing vetted deals

Explore a broad assortment of vetted investment opportunities featured on the offerings page. Once you find a company or deal that interests you, you can learn more by exploring the company’s profile or following their updates to stay in the loop.

Our venture team actively sources deal flows in three different ways:

  1. Referrals from venture capital funds, incubators, accelerators, and angel groups.
  2. Our venture team is dedicated to keeping a pulse on venture activity and establishing relationships with companies we've identified as trending.
  3. Organic - we are fortunate that many companies hear about SeedInvest through word of mouth and apply directly online.

All companies 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.

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

Business due diligence generally includes:

  • 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)
  • Investment Committee review
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Step 4

Do your homework

Now that you’ve taken a look around, it’s time to dig deeper. Investing in startups is inherently risky, so it’s important for you to do your own independent due diligence to mitigate those risks.

Take a closer look at the companies you're interested in. Dive into due diligence materials uploaded to the data room, attend webinars, and ask questions.

Due diligence is an investigation into a business for the purpose of being able to make an informed investment decision.

    1. Get to know the company you are looking to invest in by viewing their investor deck, any financial documentation, and term sheet.
    2. Connect and communicate with the founding team members.
    3. Understand the industries and marketplace in which the company is positioned.
    4. Do research about the company outside of the SeedInvest platform.
    5. Share the deal with your colleagues and get outside opinions. Feedback is valuable, but also remember that you're the one writing the check.

During the process of personalizing your experience on the platform, we will guide you through the various factors that you should consider when deciding how much of your portfolio to put into startups.

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Step 5

Complete your investment

By this point you’re ready to invest. Just 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 or Trusts).

Learn more about how to invest and the closing process in our FAQs.

    1. Click the "Invest" button on a given company's profile.
    2. Enter your investment amount.
    3. Verify your identity and accreditation status.
    4. Execute the required legal agreements.
    5. Enter the account information of your bank account (checking or savings) or choose to wire the funds.
    6. Confirm your investment.

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. Upon the completion of certain closing mechanics and compliance checks, the funds will be transferred to the startup.

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Step 6

Manage your account

Making your first investment is just the beginning – now you can start building a portfolio of private company investments on SeedInvest. 

You can view all your investments on your Portfolio page, as well as access your final investment documents. Learn more.

Generally speaking, early stage investors should expect to receive updates on a quarterly basis. While many companies take it upon themselves to update their investors directly, SeedInvest does offer optional shareholder reporting services to its portfolio companies. In such cases, SeedInvest investors are notified via email and can access and review updates directly through their Portfolio page. Additional portfolio management and shareholder reporting tools will be integrated into the SeedInvest platform over time. 

Please keep in mind that private company reporting can oftentimes be irregular. And while SeedInvest recommends its companies provide thorough updates at regular intervals as a best practice – and provides tools and resources to help do so more efficiently – responsibility ultimately falls on founders to produce and distribute updates. 

Learn more about portfolio updates.

    1. Most experts suggest that you stay invested in at least 10-15 private companies in order to enhance your diversification. Keep an eye out for companies in different industries and come up with a plan for adding additional investments over time. 
    2. 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.
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A curated selection of companies across every industry.