Crowdfunding Platform Seedrs Begins Offering ‘Convertible’ Equity Option

i probably need to read this, but i have no patience right now.


Proof there’s still room for innovation in the equity crowdfunding space yet, if Seedrs‘ claims of a first hold true. The “pan-European” equity crowdfunding platform is adding ‘convertible’ equity as an option for startups wanting to raise funding via the site, with the UK’s Future Ad Labs being the first to use the new investment mechanism.

Convertibles, commonly used in Silicon Valley and increasingly in Europe, offer the advantage of simplicity and speed, since the company’s valuation is deferred to a future date, typically when a larger VC round takes place and determined by the VCs leading the subsequent round.

Meanwhile, investors in a convertible are offered a discount in relation to that future valuation. In the case of Future Ad Labs, it’s offering a 15 per cent discount to ‘armchair’ investors via Seedrs.

The London-based startup, which offers a revenue-generating and more human-friendly alternative to the CAPTCHA, is…

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