£46m investment closed for UK startups: SeedLegals 2018 Year in Review
2018 was a stellar year for SeedLegals, with 26,981 documents created by over 4000 startups. We're extremely proud to have saved the startup ecosystem an estimated £4.5 million in legal fees last year.
We're transforming the way startups raise funding
In 2018 we launched 2 new ways to raise funding: a SeedFAST and Instant Investment, enabling startups to get investment flexibly at any time. It’s a move to a future where we see continuous funding sitting alongside discrete funding rounds. Over half of companies doing a funding round on SeedLegals are now enabling a rolling close.
We helped a record number of companies get funded
238 companies successfully closed a total of £46 million in investment. To put that into perspective, that's comparable deal volume to the largest equity funders in the UK (It's not quite apples vs. apples, but until law firms publish their deal history it's the closest comparison we've got!):
On SeedLegals, median investments range from £10k-£25k per investor, compared with an estimated £700 on crowdfunding platforms. SeedLegals is becoming a new type of ‘pro crowd’ platform, where professional investors close funding directly with startups:
Funding Rounds had a median value of £25k committed per investor, and an average round size of £70k for 'friends and family' stage rounds, £200k for angel rounds and £650k for VC rounds.
Instant Investment allows startups to flexibly top-up with additional funding post-closing and had a median value of £12.5k per investor.
SeedFASTs provide a quick way to get investment before a funding round and had a median value of £10k invested per investor.
Fundraises ranged from small cash injections to £3m funding rounds:
We're delighted to have supported rounds with investors from some of the UK’s most recognisable investment brands:
In 2019, a huge 10.8% of companies on SeedLegals self-reported as being in the Machine Learning or Artificial Intelligence space. Here are the top 5 sectors:
26,981 legal agreements were created. Here are our top 5 most popular:
Fuelling the startup ecosystem in 2019 and beyond
We've already transformed the way startups close investment. We've also transformed the way companies give shares to employees with our EMI Option Scheme.
In 2019 we're automating even more of the things needed to scale a business:
☻ We're automating share transfers, from something that used to be done through accountants, to a matter of clicks. Investors, founders and employees will soon be able to sell their shares via SeedLegals.
☻ Then we're introducing a dedicated investor interface for VC funds, accelerators and angel networks to manage their portfolios and speed up their investments.
☻ And we'll be launching in our next country. Stay tuned for where!
Here's to another year in our mission to make the legal and accounting side of running a business the easy bit.