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16 User Reviews

5.3

Overall Score

NextSeed is a financing platform that provides new, growing, and expanding businesses the opportunity to raise capital while engaging the local community as investors. The company focuses exclusively on brick and mortar, consumer-facing businesses to connect them with NextSeed's network of thousands of local investors. NextSeed's maximum loan amount is $1 million and startups must have five or more years of experience. 

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The Good

  • Unique Business Model
  • Financial Product Options
  • Marketing Benefits
  • No Fees Unless Pitch is Successful
  • Resources for Businesses
  • Industry Types
  • Resources for Investors
  • Referral Program
  • NextSeed Reviews

Unique Business Model

NextSeed provides business owners with a way to find investors and raise money without giving up ownership in their company to accredited investors. With NextSeed, business owners can create a debt offering and invite anyone to invest in their growth without the hassles of traditional financing. The process is as follows:

  • Step 1 - Fill out NextSeed's simple online application and quickly find out if NextSeed is the right fit.
  • Step 2 - If approved, work with NextSeed's team of financial, legal, and marketing specialists to create and launch the pitch.
  • Step 3 - Tap into NextSeed's expert marketing, advertising, and PR support to promote the pitch and raise funds successfully.
  • Step 4 - Utilize NextSeed's investor management support platform to streamline monthly payments, investor updates, reward fulfillment, and tax forms.

Financial Product Options

NextSeed offers two financial products for local business owners to choose from: term loans and revenue sharing loans.

Term loans range from $50,000 to $1,000,000 and have fixed monthly payments and set interest rates ranging from 10 to 18 percent. Term loans are great for businesses with steady cash flow and the ability to start making payments immediately, and there are no prepayment penalties, so borrowers can pay them off early if they choose.

Revenue sharing loans range from $100,000 to $1,000,000 and have APRs ranging from 15 to 25 percent. With a revenue sharing loan, the borrower shares a percentage of their gross monthly revenues until they fulfill a total payment back to investors. These loans are good for new businesses that have a ramp up time or are driven by seasonality.

Marketing Benefits

Choosing to work with NextSeed comes with a few additional marketing benefits that most traditional lenders can't provide. For example, businesses that submit crowdfunding offerings through NextSeed get access to a platform for storytelling, a small army of advocates, and expert marketing consultation. Businesses may also receive pre-opening buzz.

No Fees Unless Pitch is Successful

With NextSeed, potential borrowers are not subjected to any fees unless their offering is successfully funded. Even then, it is a one-time fee that covers a variety of services, including handling all required banking, escrow, and payment processing fees paid to third-party providers; helping design and create campaign content; assisting the preparation of legal disclosures and the filing of required legal documents with the SEC; marketing, advertising, and PR guidance for the campaign; facilitating Q&A during the offering; collecting investment commitments and distributing funds; servicing note payments to underlying investors; and preparing and distributing tax forms to investors at the end of the year.

Resources for Businesses

NextSeed offers flexible debt financing from investors in the community. It works with the business owner in crafting the campaign content, offering legal templates and filing support, providing marketing expertise and consultation, and servicing payments to investors throughout the repayment cycle.

Plus, NextSeed continues to engage issuers through community events and networking opportunities to increase community support and engagement even after the campaign has ended. 

Industry Types

NextSeed is open to funding businesses that are “consumer-facing Main Street” business types, such as:

  • Food and beverage
  • Hospitality
  • Fitness studios
  • Salons and spas
  • Retail

Past industries funded by NextSeed include restaurants and bars, craft breweries, co-working spaces, and spas and healthcare facilities. New concepts created by experienced management teams are welcome in addition to expanding businesses.

Resources for Investors

NextSeed is a great option for investors who want to use their local knowledge about a city to predict success and to invest with pride. Investments start at $100, making it a relatively inclusive community for investors of varied budgets.

All businesses featured by NextSeed must pass an approval process before launching an offering, giving investors a degree of confidence in the offering’s viability. The required paperwork by businesses includes the following:

  • Last three years of business’s tax returns (if applicable)
  • Balance sheet, income statement, and statement of cash flow for the last three years and current year to date (if applicable)
  • Bank statement of the company for the last six months
  • Five-year pro forma financial projection
  • Copy of rental lease agreement (if funding request is for a new location)

Once a business successfully begins launch/growth, payments are deposited into each investor’s NextSeed account.

Referral Program

NextSeed offers a cash benefit to individuals who successfully refer a business. The company’s referral program lets you earn $500 when a business you refer launches a campaign, and the business itself gets a $500 discount.

NextSeed Reviews

The majority of NextSeed reviews on BestCompany.com are positive. Satisfied customers highlight the company as a great crowdfunding campaign resource and a useful platform for startup businesses. With a simple application process, quick funding, and quality customer service, NextSeed comes highly recommended from its customer base. 

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The Bad

  • Risk of Loss
  • Time to Funding

Risk of Loss

NextSeed is very upfront about the risks involved for investors. While the company does closely examine each business’s funding proposal via the required paperwork, it doesn’t verify accuracy, completeness, or adequacy of any information. You can find further information about the company’s pre-vetting process on its FAQ page.

Any investment could result in total loss so investors are advised to not invest in NextSeed’s featured opportunities unless they can afford to lose that investment.

Time to Funding

With NextSeed, it can take upward of 21 days for the offering to be fully funded, and there's always the risk that the offering will not be successful. With some other lenders, funding can be obtained in as little as one day.

A study from the Federal Reserve noted that 63 percent of firms apply to online lenders for a fast turnaround, so the wait could deter you from choosing NextSeed.

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The Bottom Line

NextSeed's crowdfunding approach to business loans doubles as a marketing opportunity, enlisting a small army of advocates and potential customers with a vested interest in the business's success. It facilitates efficient capital raising and local community engagement with your business without requiring businesses to pledge a personal guarantee — even for new concepts.

Though past performance doesn’t guarantee future success, the company does boast that over 90 percent of its featured campaigns have met their fundraising goals. NextSeed is a company well worth considering in that it delivers both capital and the crowd to a business.

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Star Rating

4.6

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16 Reviews

Review Breakdown

5 grade

88%

4 grade

0%

3 grade

0%

2 grade

6%

1 grade

6%

Sentiment Criteria

Value

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Jessica Hughes Houston, TX

NextSeed's team of seasoned professionals made my due diligence process quite simple. I was impressed at the human power, speed and efficiency at which they worked. My business was successfully funded days after closing and they have since handled all required reporting and communication with my investors. This was a seamless transaction I would recommend to any business owner.

2 years ago

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Megan Tyrrell Laguna Beach, CA

I am so happy I found NextSeed. I have been on both sides of this platform as an investor and as a passionate entrepreneur raising capital for my own business. The whole experience from the application to raise funds and throughout the process of doing so, I felt the Nextseed team was thorough, honest, and helpful! I would recommend NextSeed to any exciting upcoming company looking to raise capital without giving away equity! I plan on continuing to invest in exciting upcoming businesses through NextSeed.

2 years ago

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Roveen Abante Humble, TX

We ran a campaign with Nextseed and surpassed all expectations. Our max goal was $700K and we reached that way before the end date. The team is very professional and went out of their way to ensure we were marketed properly and kept us updated and also provided advice on best practices. We truly recommend Nextseed if you have an idea and concept you want to make into reality. We could not have done it without them!

2 years ago

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Anh Houston, TX

Incredible platform that brings together entrepreneurs and investors to disrupt how projects are funded. Nextseed helped launch our concept Bravery Chef Hall in Houston, Tx with a total of 1 million dollars raised and over 500 investors. Not only did we reach our funding goal but the amount of marketing and support we got from our community helps us start our venture on the right foot. Nextseed is a game changer.

2 years ago

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John Kang Denton, TX

We have had nothing but the BEST customer service with Nextseed. Without their help in funding, I don't think we would be where we are today. We owe them more than words can describe for helping us get funded on our second food truck. Not only did they help us get the funding but was available literally 24-7 to hold our hands and walk us through the process all the way through. I definitely recommend them to win Best Company!!!

2 years ago

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Cuc Lam Houston, TX

Working with NextSeed on our funding campaign was an incredibly enlightening experience. The NextSeed team is resourceful, professional and extremely communicative. We learned a great deal about ourselves throughout the process of planning and implementing our campaign. Not only is NextSeed an incredibly valuable tool for helping us to find investors, it has proven itself to be a great networking and marketing tool.

2 years ago

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John Smolen Las Vegas, NV

Crab Corner was the first Las Vegas Business on the NextSeed Platform. We were a very unique case as we were an existing business looking to add some expansion and create some working capital and debt restructure rather than a start up. I was very pleased with the detailed marketing/creative used for our campaign. I wish we would have hit our maximum goal of $100K rather than $84K, but I think as we were an existing business and less risky, our lower APR was not as great of a draw as some competing startup campaigns running at the same time.

2 years ago

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Brian Ching Houston, TX

NextSeed provided us, at Pitch 25 with a great experience. They made it extremely easy for me to raise the capital that we needed and allowed me to focus on opening my business. I was surprised with how much publicity that we got and the marketing power behind the raise. This allowed us to be extremely busy as soon as we opened the doors and provided us with loyal customers from day one.

2 years ago

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Rassul Zarinfar Houston, TX

Working with NextSeed has been a pretty incredible experience. We had a pretty lofty goal of a 1 million for the BuffBrew Taproom and NextSeed helped us to achieve that in ONLY 6 WEEKS! Once we quickly reached our goal they helped us keep our campaign rolling with our 583 investors and provided assistance without delay.

2 years ago

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Taylor Stephenson Houston, TX

NextSeed has made our lives so much easier with fundraising for the Buffalo Bayou Brew Co. Taproom. They have been there with us and for us every step of the way, providing guidance and experience for everything from investor updates to campaign direction and more. To say their whole team was extremely helpful is a huge understatement!

2 years ago

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Eric Hsu Brooklyn, NY

NextSeed was able to help us close the gap in fundraising without giving up equity. They also have a very active (and growing) group of investors that you would normally not be able to reach. Investors love NextSeed's business model and so do we. I would highly recommend NextSeed to businesses looking to fundraise.

2 years ago

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Christina Mullin Houston, TX

NextSeed is a great company that is doing some really cool things. We have been partnering with them for about two years and have had a great experience. Top notch team with great customer service that makes things flawless for us as a customer. Highly recommend them as a top company to work with!

2 years ago

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Trevor Janecek Houston, TX

NextSeed is an innovative platform that is going to make a huge difference! They were really flexible and easy to work with when we funded PORTERS. As an investor, it is so easy and intuitive to use the system. They make it almost too easy to give them your money.

2 years ago

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Cinco TacoBar Pleasanton, CA

The entire company and experience has been nothing but professional. NextSeed is extra selective and truly cares about the entrepreneur’s and small businesses they work. We are proud they have our back and the local community is even happier to be able to support making our dreams a reality.

2 years ago

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Daniel Vargas Houston, TX

For active or newly closed investments they are not very good at managing the communication. If the issuer is falling behind in payments or is behind in opening up you have to be actively requesting NextSeed for updates. Not too hard to ask the issuer to provide a consistent update on a monthly or quarterly basis.

6 months ago

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rajesh Houston, TX

They do not honor their offers to investors. They have bonus rewards to entice you to invest but they do not give you the bonus rewards. What else are they not telling their investors.

2 years ago

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