(Left to right) Patrick Cutliffe, social media consultant; Michael Faulkner, owner; Gavin Gallagher, programmer; and Connor Doherty, online community manager
Donegal-based crowdfunding platform Seedups is in a good position to benefit from a recent Congressional law change in the US which makes it easier for early stage start-up companies to raise money from investors.
The company, founded by Michael Faulkner last year, aims to open up the funding pipeline for seed-stage investors, as well as enabling armchair investors to find an easy way to turn themselves into the next Dragons’ Den panel.
Until recently, crowdfunding for equity was illegal in the US, but efforts are ongoing to ensure that the Entrepreneur Access to Capital Act passes, which would provide an exemption for crowdfunding.
Seedups has offices in Ireland, the UK and in Silicon Valley, and with a self-governed system which fits the exceptions the Securities and Exchange Commission is proposing. This places the firm ahead of the competition, and is good news for investors and start-ups here at home, according to Faulkner.
Bringing a virtual Silicon Valley to investors
“The Seedups platform brings a virtual Silicon Valley right to UK, Irish and US investors, bringing new and exciting tech-based businesses right to their browser,” he said.
Seedups uses micro-investments and the “wisdom of the crowd” to ensure that the value of the company is decided by the investors, who can contribute anywhere between €250-€10,000 into businesses, which can raise anywhere between €25,000-€250,000.
“Seedups offers a safe, secure and user-friendly means of browsing opportunities, the matching engine being supported by a social network that allows users to ask questions, interact, form groups and discuss investments and conduct due diligence on start-ups,” Faulkner explained.
Since officially launching in February, Seedups has been nominated for the Innovation Award at the Derry Business Awards and been named as one of the 50 best Irish-American small businesses for 2011, as well as launching the US service at the prestigious SxSW festival in Austin, Texas.
