Seedrs offering chance to invest in next top app.
Equity crowdfunding platform Seedrs is offering investors the chance to invest in the next big mobile apps, from as little as £100.
Seedrs has partnered with Worth Capital, a firm which designs business competitions, to open up investment into the 'Big App Fund'. The fund will be invest the winners of a competition across Europe to identify the next big apps in retail and e-commerce.
The competition launches this week, and is being supported by Facebook. The best 100 entrants will be invited to attend a Pitch Day at Facebook's London offices in October, with a final judging event in November. All judging is carried out by a panel of experts.
What's the investment?
The Big App Fund is looking to raise £350,000 on Seedrs. The fund will be investing up to £150,000 in the winner, with up to £100,000 in the runners up. That will be enough for anything from 10% to 30% of equity in each business. Invest in the fund - and you can do so with as little as £100 - and you get a slice of each company. To give the winners a better chance of being a success, not only do they benefit from the cash but they will also be mentored.
Mobile apps are a huge industry, with more than $3.5 billion invested in apps by venture capitalists in 2013 alone.
The fund is open for investment for another 58 days and has already hit £115,000 at the time of writing.
How risky is investing in start-ups?
Investing in start-up businesses is undoubtedly risky. If things go well, there’s great potential for profit. Sadly, not every start-up is going to be the next Google. Most start-ups will fail.
And if they do, you could lose all of your investment. As a result, it's a good idea to invest smaller amounts in a range of different start-ups, rather than just a single idea that wins your heart.
With Seedrs, it's worth noting that if you don’t invest at least £1,000 over at least 15 companies within your first year with Seedrs, it’ll contact you to try and find out why. If your response isn’t satisfactory, Seedrs may prohibit you from making further investments.
Are you tempted to get involved? Let us know in the comments below.
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