Popularly and Frequently Ask Questions

How does funding work?

Each Entrepreneur creates an online Pitch explaining their business and what they aim to achieve with the investment. The Pitch will include 2 key numbers:

  1. The Target Amount: the total amount of money they wish to raise and invest in the business
  1. The equity offered and the percentage share of the business they are offering in return for raising the Target Amount

Entrepreneurs then promote their Pitch to potential Investors. Investors then invest money in the Pitch and over a period of time (60 days is the average time available to raise the investment required) investments accumulate until the Target Amount is reached.

The minimum investment is just $50 but investors can of course invest larger sums.

How do I register/set up an account?

To set up an account, click ‘register’. The link is found in the top right hand corner.

Enter your email address, username and password. Usernames have to be between 4 and 12 alphanumeric characters with no hyphens, dots or underscores.

You will subsequently be asked to complete a short questionnaire that assesses whether you fully understand the high risk nature of investing in start-ups and early stage businesses, or you can self- certify as a High Net Worth Individual or Sophisticated Investor.

What happens if the Target Amount is not reached?

If the Target Amount is not raised within the time period then the Pitch will expire and no money will be taken from Investors’ bank accounts. In some circumstances the Pitch may be extended for a further period of time and this is at our discretion.

What happens once the target amount is raised?

Once a pitch has reached its funding target the entrepreneurs has the choice to either close the pitch to further investment or enter a process known as overfunding.

For further details on what happens when a pitch closes to further investment please see here

For further details on overfunding please see here.

Is there a maximum or minimum Target Amount?

The minimum Target Amount is $10,000. There is no maximum Target Amount, however our optimum range is $100,000 – $150,000. If you are looking to raise over £150,000 you will need to have a very compelling proposition to convince us to list your business on Seedplantersglobal.

How long does the Entrepreneur have to raise the Target Amount?

Each Pitch has 30 days to raise the Target Amount. In some circumstances the pitch may be extended for a further period of time and this is at our discretion.

Can I raise more than my Target Amount?

Yes, once a Pitch has reached its Target Amount it is possible to set a secondary target and continue to receive more investment until either the secondary target is met or the Pitch completes its duration. We call this “Overfunding” and it is proving really popular, enabling Entrepreneurs to capitalise on the demand created to raise further funds.

It is critical that equity crowdfunding is accessible to everyday investors.To help you understand the Platform we’ve written some short, plain-English summaries of the four main groups.

So who can invest?

Everyday Investors:

Anyone can become an Everyday Investor. You just need to agree to not make more than 10% of your investments (including savings, stocks, ISAs, bonds and property excluding your primary residence) into company shares that cannot easily be sold, such as the ones listed on Crowdfunding. This is why the Financial Conduct Authority refer to them as ‘Restricted Investors’. Everyday Investors are the ‘crowd’ and the majority of investors will fall into this broad category.

Advised Clients:

An ‘Advised Investor’ is someone who has an FCA regulated advisor, perhaps an Independent Financial Advisor (IFA), and will receive advice from them about each investment they make on the Crowdfunding.


Self-Certified Sophisticated Investors:

This group is for people who have invested in more than one unlisted company (including via Crowfunding or Seedplantersglobal) in the last two years or been a member of a business angel syndicate or network for at least six months.


High Net Worth individuals:

If you earn more than USD$150,000 a year or have net assets of more than USD $375,000 the High Net Worth category is probably applicable to you.

At this point it’s worth remembering that these are summaries only and when members join Seedplantersglobal they’ll see the full descriptions so they can choose the group that’s right for them.

Who can invest?

To invest on Seedplantersglobal you must be over 18 years old and legally entitled to invest. Investors must be in a country where you may legally receive financial promotions of the nature provided by Seedplantersglobal and are legally entitled to invest in the type of investments. Seedplantersglobal does not advertise investment opportunities to people in the United States, Canada or Japan or any other country where it would be unlawful for our pitches to be advertised and investors must not register or view pitches if they are resident in these countries.

When registering on Seedplantersglobal you will also be asked to confirm yourself as one of our four investor types and complete a short questionnaire that assesses whether you fully understand the high risk nature of investing in start-ups and early stage businesses. If you receive independent advice you are not required by the regulations to complete the quiz. Please note that these investor types do not apply to all other platforms.

How long does the Entrepreneur have to raise the Target Amount?

Each Pitch has 30 days to raise the Target Amount. In some circumstances the pitch may be extended for a further period of time and this is at our discretion.

What happens once the target amount is raised?

Once a pitch has reached its funding target the entrepreneurs has the choice to either close the pitch to further investment or enter a process known as overfunding.

For further details on what happens when a pitch closes to further investment please see here

What happens if the Target Amount is not reached?

If the Target Amount is not raised within the time period then the Pitch will expire and no money will be taken from Investors’ bank accounts. In some circumstances the Pitch may be extended for a further period of time and this is at our discretion.

Why should I invest in a Pitch?

There are a number of reasons you may want to invest in a Pitch:

To make a return on your investment

To get a unique Reward for your investment

To help a friend launch their business

To support a business or industry you believe in

To help small British businesses

For the fun of it

Investors should implement a diversification strategy when building an investment portfolio. Diversification involves spreading your money across multiple investments and will give you, as an investor, greater peace of mind that your investments will sustain in adverse market conditions and cushion losses. However, it will not lessen all types of risk.

How does investing actually work?

If you successfully invest in a business via Seedplantersglobal you will become a direct shareholder in that company. The amount that you invest and the equity that the company is issuing in exchange for investment will affect your percentage ownership of the business.

Once the legal documentation is completed you will become a legal shareholder in that business, be sent a Share Certificate and appear on the company’s share register at Companies House. Such investments are long-term and used to help the company succeed and allow them to experience more growth than they would if they were funded with a traditional loan or grant.

The majority of investments are classed as B Shares, which means that you will not have a vote in any future business decisions and will not have pre-emption rights. Companies pitching on Seedplantersglobal can offer A Shares with voting rights so please check the pitch carefully.

Investors will be emailed a copy of the adopted Articles of Association and given seven working days to review them. During this period an investor can ask any questions that they may have and edit or withdraw their investment if they wish.

Investing in start-up and early stage businesses is high risk. The majority of start-ups fail or do not deliver shareholders a return on their investment. Liquidity, or the ability to cash in your investment is limited as it often relies on the company being sold. Dividend payments are rare and the likelihood of an Investor’s percentage shareholding being diluted by future fundraising is high.

Investors should implement a diversification strategy when building an investment portfolio. Diversification involves spreading your money across multiple investments and will give you, as an investor, greater peace of mind that your investments will sustain in adverse market conditions and cushion losses. However, it will not lessen all types of risk.

What are the risks of investing?

Investing in start-ups and early stage businesses involves risks, including illiquidity, lack of dividends, loss of investment and dilution and it should be done only as part of a diversified portfolio. Seedplantersglobal is targeted exclusively at investors who are sufficiently sophisticated to understand these risks and make their own investment decisions. You will only be able to invest via Seedplantersglobal once you are registered as sufficiently sophisticated. Please click here to read

Am I able to ask the Entrepreneur questions about their business?

Absolutely. We provide a discussion forum for each Pitch where you can ask questions which the Entrepreneur will reply to. You can also use the Discussions to discuss the Pitch with other Seedplantersglobal Members and help each other to form opinions on the Pitch’s prospects.

How do I know the Entrepreneur has a genuine business idea?

Whilst Seedplantersglobal does vet businesses before they are listed on Seedplantersglobal, Investors should call upon their own judgement, knowledge and research along with that of the Crowd (other Whilst Seedplantersglobal does vet businesses before they are listed on Seedplantersglobal, Investors should call upon their own judgement, knowledge and research along with that of the Crowd (other Investors within Seedplantersglobal) to decide whether the Entrepreneur is worthy of their investment.

Do you publicly publish my investment amount?

No. We display a list of Pitches that you have invested in on your public profile but we do not disclose how much money you have invested in each Pitch.

When is the money taken from my account?

When you invest via a one-off Direct Debit payment using GTBank Payment Gateway, the money will only be taken from your account when the Pitch reaches its Target Amount and all of the legal documentation is completed.

If funding fails, do Investors pay anything?

No, your money will not be withdrawn from your bank account and no charges made.

Do I get notified when a Pitch successfully reaches its Target Amount?

Yes, when a Pitch reaches its Target Amount all Investors will receive an email to that effect.

Can I cancel my investment?

Yes, you can cancel your investment in a Pitch at any time before the deal is completed. Please send cancelation support@seedplanters.com to cancel a pledged investment, this will subsequently update our platform.

Investors in a Pitch that successfully reaches its Target Amount will be emailed a copy of the adopted Articles of Association and given seven working days to review them. During this period an Investor can ask any questions that they may have and edit or withdraw their investment if they wish.

Can I pay by cheque or bank transfer?

We are not authorised to hold client money and therefore we don’t accept cheques or bank transfers.

What is diversification and how does it work to reduce some of the risk of investing in businesses via Seedplantersglobal?

Investing in start-ups and early stage businesses involves risks, including illiquidity, lack of dividends, loss of investment and dilution, and it should be done only as part of a diversified portfolio. Seedplantersglobal is targeted exclusively at Investors who are sufficiently sophisticated to understand these risks and make their own investment decisions. You will only be able to invest via Seedplantersglobal once you are registered as sufficiently sophisticated.

Investors should implement a diversification strategy when building an investment portfolio. Diversification involves spreading your money across multiple investments and will give you, as an Investor, greater peace of mind that your investments will sustain in adverse market conditions and cushion losses. However, it will not lessen all types of risk.

What is your complaints procedure?

In the unlikely event that you are not completely happy with the service that we have provided you can register a complaint online or by phone. To submit a complaint, please visit our Complaints page.

What is the Alternative Offer tool?

The Alternative Offer tool allows you to tell Pitch owners that you want to make an investment but that you think the valuation isn’t quite right. By entering what you believe the business is worth and how much you’re willing to invest (min $10,000 to make an Alternative Offer), we’ll recalculate how much equity needs to be offered to raise the funds needed and what your share would be.

This Alternative Offer will be put forward to the Entrepreneur and they can decide whether it’s acceptable. If the Alternative Offer, which is valid for three days, is accepted it will apply to all previous and future Investors.

Please note that the Target Amount can’t be changed.

Here’s an extreme example…

Original structure
Target Amount = $100,000
Original equity offered = 10%
Original business valuation = $1,000,000

Proposed deal
Target Amount = $100,000
Your valuation = $500,000
New equity required = 20%

Your investment = $10,000
Your total share would be = 2%

Who is responsible for ensuring Rewards are delivered?

Entrepreneurs take full responsibility for ensuring all Investors receive their Reward.

How do I redeem my Reward?

Once the Target Amount has been met and the investment has been made in to the Entrepreneurs’ company, the Entrepreneur will be responsible for ensuring that every Investor receives the appropriate reward.

What if the Entrepreneur needs more information (i.e. T-Shirt sizes etc.) for the Reward?

The Entrepreneur is responsible for contacting the Investors if any further information is required.

Why does Seedplantersglobal hold my shares if invest in a company using a nominee?

If a company selects to raise finance using a nominee then Seedplantersglobal will act as its nominee and maintain the relationship between investors and The Company by holding investors shares on trust. Investors will receive the beneficial interest in those shares, entitling them to the return on their investment if The Company exits and any dividends, if dividends are offered to shareholders.

Can I benefit from EIS and SEIS tax relief when investing via a nominee?

Holding shares via nominee will not affect a company’s EIS or SEIS status.

PLEASE NOTE: The availability of any tax relief, including EIS and SEIS, depends on the individual circumstances of each investor and of the company concerned, and may be subject to change in the future. If you are in any doubt about the availability of any tax reliefs, or the tax treatment of your investment, you should obtain independent tax advice before proceeding with your investment.

What protections will I have as an investor via a nominee?

Seedplantersglobal will maintain the relationship between investors and the company by holding investors shares on trust. Investors will receive the beneficial interest in those shares, entitling them to the return on their investment if The Company exits or any dividends are paid, if dividends are offered to shareholders.   The nominee company will subscribe for the shares in The Company and be named on the share register.

Pre-emption, voting and other rights will depend on what the issuing company offers investors. As a beneficial shareholder certain legal rights may be lost so legal advice should be obtained where there is uncertainty.

Please read the pitch and associated documentation carefully as this will clearly set out the rights offered. If in doubt you should also take your own independent legal advice.

Who will update me on the company’s progress if I invest via a nominee?

Seedplantersglobal will maintain the relationship between investors and the company by holding investors shares on trust. Investors will receive the beneficial interest in those shares, entitling them to the return on their investment if The Company exits or any dividends are paid, if dividends are offered to shareholders. The nominee company will subscribe for the shares in The Company and be named on the share register. Pre-emption, voting and other rights will depend on what the issuing company offers investors.

As a beneficial shareholder certain legal rights may be lost so legal advice should be obtained where there is uncertainty. Read the pitch and associated documentation carefully as this will clearly set out the rights offered. If in doubt you should also take your own independent legal advice.

Can I sell or transfer my shares if I invest via a nominee?

Investors via a nominee will be the beneficial shareholders with the nominee being the legal shareholders. As beneficial shareholders, you may not be able to transfer your shares freely. It may be possible to sell or transfer your beneficial ownership to other Seedplantersglobal members but the legal title to shares will not be able to be transferred by the nominee unless The Company is sold or there is an IPO or other exit event.

Read the pitch and associated documentation carefully as this will clearly set out the rights offered. If in doubt you should also take your own independent legal advice.

What is overfunding?

When a company has raised 100% of its funding target entrepreneurs have the option ‘overfund’. This is where entrepreneurs can raise more money for their business in exchange for releasing more equity. Please note that Entrepreneurs are not required to accept further investment once their funding target has been reached. Likewise investors who invest during this period have exactly the same rights as investors who invested before the campaign overfunded.

Please see here for further information on how overfunding affects the amount of equity available.

Does overfunding affect the amount of equity available to the crowd?

Yes. For a company to overfund, and accept additional investment, they have to give away more equity. Every case is different, but as an example a company initially offering 10% equity in exchange for an initial funding target of $100,000 the additional amount of equity released by overfunding would be as follows.

Amount raised                                Equity released

$100,000 (target)                                10%

$150,000 (overfund)                          14.29%

$200,000 (overfund)                         18.18%

Please remember that every investor has exactly the same rights regardless of whether they invest before or after the pitch begins to overfund.

What are Pre-emption rights?

This is a right for existing shareholders to have first refusal on the issue of new shares by a company. These rights protect shareholders against dilution of their shareholdings. Where pre-emption rights apply, shares are offered to holders of relevant shares in proportion to their existing holdings. Generally businesses raising funds on Seedplantersglobal will only offer pre-emption rights to A Ordinary shareholders, however every pitch is different so always be sure to check the pitch page to confirm what type of shares are being offered in exchange for your investment.

Please see here for further information on A Ordinary Shares and B Investment shares.

Can I invest in equity pitches via a SIPP?

Yes, provided that your SIPP provider is happy to include unlisted shares or mini-bonds as part of your portfolio Seedplantersglobal is able to process these investments.

If you would like to make an investment via your SIPP please contact info@seedplantersglobal.com for further details.