Seedmatch, established in 2011, is Germany’s first platform for corporate crowd investing, providing opportunities for individuals to invest in dynamic startups and growing companies. It operates under the parent company, OneCrowd GmbH, headquartered in Dresden, Germany. Seedmatch enables investors to participate in the economic success of innovative startups through equity investments and venture debts
Key numbers
Who can invest?
How it works
You must be at least 18 years old to invest. The platform primarily targets residents of Germany, but it may also be open to other EU residents.
You need to verify your identity through Seedmatch’s provided methods. Setting up a personal account on Seedmatch is mandatory, so your account must be properly registered and verified.
It is crucial to have the financial capacity to bear the risks associated with crowdfunding. Investments on Seedmatch are high-risk and could result in the loss of your invested capital.
- Specialisation: Equity crowdfunding for SMEs
- Maximal observed interest rate: 10%
- Average rate: 8%
- Minimum investment amount: €250
- Average terms: 5 years. Investment terms on Seedmatch usually range from 3 to 7 years. These terms correspond to the typical growth cycles of the SMEs.
- Currencies supported: €
- Foundation year: 2011
- Commission: 0% investment fees. They charge companies a commission ranging from 5% to 13% of the total funds raised upon completing a funding campaign.
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Instruction:
Seedmatch offers two main types of investments: seed investments and venture debts.
Seed Investments
Seed investments are designed for early-stage startups that have proven their concept and generated initial sales. These investments have a minimum term of five years, and returns are based on the startup’s profitability and success. Seed investors are entitled to a base interest rate of 8% per annum, regardless of the company’s earnings.
Venture Debt
Venture debt investments allow individuals to invest in more established companies with sustainable business models and clear growth strategies. These companies have often reached or are close to reaching break-even points. Returns on these investments increase as the company performs better.
Getting Started with Seedmatch
Registration Process
To begin investing on Seedmatch, visit their website and create an account. During the registration, you will need to provide identification documents and link a verified payment method, such as a bank account or debit card. Seedmatch does not support credit card payments.
Exploring Investment Opportunities
Once your account is set up, you can explore various investment opportunities. Each project pitch is available for a maximum of 60 days, though they may close earlier if the target funding amount is reached. The minimum investment amount is 250 euros, making it accessible to a wide range of investors.
The Investment Process
Creating a Profile
Start by creating a profile on Seedmatch. This involves setting up your investment preferences and providing necessary documentation. Once your profile is complete, you can begin browsing the available investment opportunities.
Investment and Participation
Investments on Seedmatch typically range from 250 euros to higher amounts, depending on the investor’s preference. Investors participate financially in the development of the companies they invest in, benefiting from the companies’ success through dividends and interest payments.
Risks
Investing in startups and early-stage companies inherently carries a high level of risk. Companies listed on Seedmatch are often in the early phases of their development, which means there is a possibility of losing your entire investment. Factors such as team capabilities, market conditions, and competition can significantly impact a company’s success.
Investments on Seedmatch are long-term, with a minimum contract term of five years. Currently, there is no secondary market for investments on Seedmatch, so investors should be prepared for the duration of the investment period without expecting early liquidit
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