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This article was published on July 7, 2014

    Seedrs brings convertible note startup funding to European equity crowdfunding

    Seedrs brings convertible note startup funding to European equity crowdfunding
    Ben Woods
    Story by

    Ben Woods

    Europe Editor

    Ben is a technology journalist with a specialism in mobile devices and a geeky love of mobile spectrum issues. Ben used to be a professional Ben is a technology journalist with a specialism in mobile devices and a geeky love of mobile spectrum issues. Ben used to be a professional online poker player. You can contact him via Twitter or on Google+.

    Seedrs, a European platform where people can invest in seed-stage companies in exchange for equity, has launched its first ‘convertible note’ backing campaign today.

    Essentially, a convertible investment round means that investors get a discount on future shares without requiring the company to get a formal valuation. It’s like an extra little reward for believing in a company from the start. And for the companies involved, convertibles often act as bridging finance between rounds.

    “Convertibles are very popular among startups in Silicon Valley as a way to raise money now, while deferring the need to place a value on the company until some time in the future. This can be particularly useful when a startup is looking to raise large venture capital funding in the near future, but doesn’t want a valuation placed on their company now which may affect those negotiations,”  a spokesperson said.

    Future Ad Labs, which is looking to raise £400,000, will be the first company to run a convertible campaign but it’s now open to all comers.

    ➤ Seedrs

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