One of our loan recipients, Netberg, (recently featured on our blog) have just completed a successful crowdfunding campaign on Seedrs.
Originally seeking £100,000 from potential investors, Netberg has reached £150,000 with over 200 investors funding them.
Netberg is an online platform that looks to connect all SME's together. It can be difficult for startups to reach potential customers through an effective online strategy so Netberg seeks to remove the four barriers to go online - time, budget, IT skills and visibility.
'Netberg’s social mission is to empower SMEs to stand together on the internet, so that they can benefit from accumulated traffic to gain relevance; our vision is to become the world’s essential online network for all businesses to join.'
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Michele Cuccovillo, Co-founder, CEO and CMO of Netberg had this to say: "We have very clear ideas about what 2015 will look like: it will be a crucial year for Netberg. Being on a social mission to empower the long tail of small businesses, next year the big focus will be on the expansion of our customer basis at both ends of the platform: businesses and consumers. It's immensely exciting to have the opportunity of working on our business dream after having been backed by well over 200 investors coming from 20 different European countries. The entire team feel truly honoured: all our passion, endeavours and motivation will help us succeed."
Seedrs is just one of the many crowd-funding platforms that are available. Crowdfunding is a relatively new way for businesses to get funded. Businesses build a campaign for their product or service and ask the general public, private or angel investors to fund it. Most platforms allow a minimum of £1 to be invested which means you don't need to be a venture capitalist to invest in new and exciting ideas!
Seedrs, Crowdcube, Kickstarter, Indiegogo are just some of the different platforms you can choose if you require investment. Different rules apply for them as well. For example, Kickstarter employs the 'all or nothing' funding model which means if you do not reach your funding goal you don't get any funding. Indiegogo uses a funding model that is more like a donation, so you get the funds whether you reach the goal or not. If you are still not sure about which one will fit your intended campaign, do some research and see how some of the platforms differs.