Unless you've spent the last month or so hiding from our cacophony of updates, you'll have noticed that we’ve decided to launch a Crowdfunding campaign with Seedrs! There are a number of reasons for this, and rather than explain to everyone individually, we thought we’d write a blog post describing our rationale, and briefly explaining the concept of crowdfunding in general.
Why are we raising capital?
The first question to answer is “Why are we raising capital?” Thus far, Strabo has been a self funded project. We designed, built, marketed and launched the first version of the platform through a combination of in-house resources and significant personal investment. The team is all full time, and being a pre-revenue company we have not taken any salaries for a year. After proving the concept with a wonderful set of beta users and collecting reams of data, we're now looking to launch V2 and scale much more quickly. And that isn't cheap. In fact, the first question Seedrs asked us when we brought the idea to them was "Why are you raising so little?"
Profligate, we are not. For a more detailed breakdown on how the funds will be spent, you can check out our Seedrs campaign page here or reach out to us directly (details are at the foot of the page).
Capital at Risk. Approved by Seedrs.
What is Crowdfunding?
Crowdfunding, as the name suggests, is a method of raising funds for a company by taking small investments from a large number of people, rather than larger sums from a smaller number of institutional investors. A crowdfunding agency checks the details and vets the company to make sure it's legitimate, before collating the investment of tens or hundreds of investors into an SPV, or special purpose vehicle, which means that one entry on the cap table represents them all. This means that the minimum investment size can be as small as £17.56, allowing public investors who might usually not participate in alternative investing markets to join in.
So why did we decide to crowdfund?
- The first reason is that we have already raised institutional capital. We have a great VC fund and several angel investors on our investor list, without whom none of this would be possible. However, this now means that with our runway secured for the near term, we can look to alternative options for the remainder of our round.
- The second is that we think it's a great way to bring our community closer to the company as they watch us grow and progress. What better way to use the Strabo platform than by tracking your investment in the company itself! With this in mind, we're hoping to hold a number of in person events in London over the coming months, so stay tuned.
- Finally, we think it's a great opportunity to continue building our team of ambassadors and advocates - the people who are passionate about what we're doing and want to help us achieve our goals. Opening up the round gives these people a chance to identify themselves and collaborate with us to shape the product we build.
So the final question is why Seedrs?Firstly, Seedrs needs no introduction. They are one of, if not the leading equity crowdfunding platform in Europe. They have a great track record and are very well respected in the industry, having helped raise large rounds for hugely successful fintechs like Revolut & Plum. We believe that they will be able to provide us with the reach and support that we need to succeed.Secondly, we have been hugely impressed by the team from start to finish. We first became aware of Seedrs through Jeff Lynn, the founder, and everyone since has put in a great deal of work to get the campaign live. Particular shout out must go also to Edouard, Kasia and Millie who have been incredibly patient with our late night emails and outlandish questions.
What next? How can you get involved?
The number one way to get involved is by investing! Given the small size of the round and the significant interest so far, we anticipate being well oversubscribed, so time is of the essence. At time of writing, one day after going live in private, we are 88% committed!
Of course, investing in risky asset classes is not suitable for everyone. However, there is lots more you can do to support us. Now that we are live, we are focusing on getting the word out and raising as much awareness as possible. So every like, share, comment and mention over this Friday's pint makes a huge difference!
You can also reach out to us personally at any time via firstname.lastname@example.org
Investing involves risks, including loss of capital, illiquidity, lack of dividends and dilution, and should be done only as part of a diversified portfolio. Please read the Risk Warnings before investing. Investments should only be made by investors who understand these risks. Tax treatment depends on individual circumstances and is subject to change in future. Seedrs does not make investment recommendations to you and any investment decision should be made on the basis of the full campaign. No communications from Seedrs, through email or any other medium, should be construed as an investment recommendation.