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13 User Reviews
SeedInvest is a startup investing platform seeking to provide members access to investment opportunities without charging investor fees or carried interest. SeedInvest was founded in 2012 by a team of experienced investment professionals who played a part in the 2012 JOBS Act.  

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The Good

  • Model type
  • Fund type
  • Maximum allowed raise
  • Deadlines
  • Receiving funds
  • Administrative work options

Model Type

SeedInvest operates primarily as an Equity Model. On their platform, companies have direct access to accredited investors around the world. Due to SeedInvest's strict vetting process before granting access to their crowdfunding platform, only a slim 1% of companies are approved to crowdfund on their website. Companies need to demonstrate proof of concept, have at least two full-time team members, and are incorporated as a business in the United States. SeedInvest has fostered a network of investors interested in funding small businesses and companies who have a product that has proven viability in the marketplace. Businesses are able to directly connect to and appeal to investors by offering equity in their company. They are also able to utilize integration of social media as well as advertising tools to promote their company. This allows users to appeal to friends, family, and customers for donations to their business venture.

Fund Type

SeedInvest is an All or Nothing fund type. Unlike 'Keep What You Raised' types that other crowdfunding platforms offer where you receive all funds donated whether you reach your goals or not, with All or Nothing, if you don't reach your total predetermined monetary goal you don't receive any funds. This can be a struggle for new businesses attempting to raise much-needed funds in an equity crowdfunding model.

Maximum Allowed Raise

With SeedInvest, small businesses and companies can raise between up to a maximum of $5,000,000. This is only if they have been proven viable in the marketplace with the funding they need. The average funding amount reached is approximately $40,000. SeedInvest's maximum amount is one of the highest out there when compared to other equity crowdfunding sites that typically have a six-figure cap.

Deadlines

With SeedInvest, companies have 60 days to demonstrate they have raised the funds they are asking for. For some, this may be too short-especially for a business trying to get off the ground or who have never raised funds before.

Receiving Funds

SeedInvest requires companies to reach a minimum funding target (determined by each individual business) in order for their campaign to be considered successful. Investments will not be allocated until the minimum funding target has been met. This may disqualify some businesses from achieving any level of funding if they are unable to reach minimum funding targets.

Administrative Work Options

Their crowdfunding platform aids companies in incorporating due diligence, legal documents, and processing of investments in order to make closing investment opportunities quickly. This provides valuable support to businesses when appealing to investors.
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The Bad

  • Fees

Fees

The fees required by SeedInvest are expensive when compared to other crowdfunding platforms. They require 7.5% of the funds raised upon completion of a campaign in addition to between $3,000 and $5,000 in escrow, due diligence, marketing and legal reimbursement. This is substantially more expensive than a flat 5% completion fee required by many other crowdfunding platforms. Unlike some crowdfunding companies who will charge you a fee if you don't complete your campaign, SeedInvest does not charge a non-completion fee.
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The Bottom Line

SeedInvest is a great crowdfunding platform for small businesses that have a viable operation which has already proven itself lucrative in the marketplace. The fees may be high; however, those who qualify to use this funding platform get access to vetted investors along with effective fundraising tools that simplify and streamline the fundraising process.
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Star Rating

2.2

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13 Reviews

Review Breakdown

5 grade

15%

4 grade

15%

3 grade

0%

2 grade

8%

1 grade

62%

Sentiment Criteria

Value

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Quality

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Service

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Trustworthiness

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Marisa F Oakland, CA

SeedInvest has really demystified startup investing for me - their webinars and other content have been educational and the team is transparent about the risks of VC. It's easy to invest on the site, and when I did have some questions I was pleasantly surprised to reach a real person via their on-site chat window on the weekend.

2 years ago

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Frank Ann Arbor, MI

It's comforting to know that someone has done the due dilligence on SeedInvest deals. I do have to spend a lot of time on the site sorting through profiles to find the few companies that are interesting to me, but then it's easy to ask the founders questions and potentially invest.

2 years ago

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Lee Hall Philadelphia, PA

They encourage investors to buy into as many startup companies as possible for the best potential returns. I'm glad I didn't invest in more than one. I feel totally taken advantage of. I'm a music lover and decided to invest in the 8tracks platform in 2016. By December 2019, the company was in bankruptcy and now, April 2020, the law firm says equity holders will get nothing at all except a downloadable letter to show an accountant. The communication about what was going on at 8tracks those 4 years was scant and did not inform me of the seriousness of the financial problems. So 8tracks was not a sound business. Instead of properly vetting it, SeedInvest basically used a lot of small investors' money and let us find out the hard way. I'd assume SeedInvest seems attractive to many small investors like myself. At first it appeared to be high-tech, well-run, low-risk but exciting and inspiring. After all, these are small businesses and many of them have real emotional appeal. But the first problem came early on, and it was a big one: double charging investors' credit cards. While SeedInvest eventually rectified this, the 8tracks blog refers to it in a way that, at least partly, puts blame on SeedInvest for the financial failures of 8tracks. Next issue: SeedInvest and the broker, VStock Transfer, were terrible at answering questions about whether shares had been issued, where they were, and how to keep track of them. So I never could, and I don't know who could. In the digital era this is both unprofessional and absurd. Every aspect of my experience has been unpleasant, and I'm ultimately left with zero dollars from my initial investment. There is no one to take my side. This is about as bad as it gets, and I'd say: Walk away from SeedInvest's much-vaunted opportunities.

1 year ago

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W Bellevue, WA

Can't put up enough caution signs about dealing with SeedInvest as an issuer. Massive turnover and personnel issues, many misrepresentations, ultimately a failed offering that was so costly as to nearly put us out of business. Impossible to reach senior management without threatening to call the SEC. If you want to place the fate of your startup with a bunch of inexperienced twenty somethings and a company with a culture of dishonesty, go for it. But I've cataloged all their offerings and most don't seem to make it, then immediately get completely scrubbed from any internet evidence. They have a very low success rate.

2 years ago

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Ella San Jose, CA

Aryeh F, is unprofessional. We have not heard from him for over a week about our legal documents and he failed to send us a courtesy email but left us in the dark with no feedback. We are shocked that a few team member told us that he has been in the office. What has he been doing for a week? Not working because our concerns would have been addressed right now. Mr.F needs to be fired! Worst work ethic and very unprofessional to deal with. This is our first time working with seedinvest and it will be our last.

3 years ago

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Pierre-Luc Morneau

I was impressed at first by the way they embraced technology to serve customers, but things changed when they gave me confirmation of a refund process. I provided everything they asked, received written confirmation. After many follow ups, i was told that it was a manual process since they are not used to handle refunds, so i waited. Followed up again since they were supposed to follow up, but heard nothing. Then i was ask AGAIN to provide more info. Totally unacceptable! Lucky for me the amount is small, but be careful when considering larger sums as you might have to experience what i've been through.

4 years ago

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mok Honolulu, HI

Invest in companies by little investors as myself and have a chance to grow my wealth to fund more companies. Thanks to the opportunity enacted in May 2016 that allows investing alongside Institutional investors.

4 years ago

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ALIAZAM RASEL Anaheim, CA

This company is cheat. They charge 3% convenience fees. Also you you try to withdraw your money. They hold your money. Do not invest here.

5 months ago

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Christian San Francisco, CA

Poor communication throughout the campaign, claims to capital upon signing up that we saw no evidence of throughout the campaign. Poor management of the campaign. If you're looking to raise capital through crowdfunding, look elsewhere. These guys won't be around much longer.

2 years ago

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Tom William New York, NY

Quick process - professional service. Would definitely recommend. Ryan is really hands on and awesome.

4 years ago

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harry Lynnwood, WA

They will make you waste your time. Amazingly unprofessional !!!

5 months ago

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jerry coles Bakersfield, CA

Terrible...Lost $10,000 with no response from them or the company I invested in...Leaf....They claim to make Grow Boxes but both companies are a scam

1 year ago

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Luke Davis

SeedInvest made claims to capital they ultimately didn't have access to and it cost our company the round.

4 years ago

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