Earlier this month, Seedfunders, a Florida-based investment firm for early-stage startups, launched the Associate Network.
The Associate Network is for investors outside of the Seedfunders organization allowing them easy access to view investment opportunities, sign documents and wire the funds. The complete process will be fully automated allowing for a greater amount of investors and overall funding for the startups.
Seedfunders’ goal was to add 40 new accredited investors in the first month, but the opportunity catch momentum pretty fast!
Dave Chitester
THE CONCEPT 💰
Dave Chitester, Founder of the Florida investment firms Florida Funders and Seedfunders, told South Florida Tech Hub that “97% of investors don’t invest in private deals because they either don’t know about them or find them too risky. The Associate Network aims to make it easier to invest locally.”
Chitester said that he had the idea for this concept years ago, but never launched it because no one understood the concept and it was very hard to do because the entire process had to be completed manually from start to finish. He only knew of two other firms using this concept at the time, AngelList and FundersClub.
There is no cost to join the Seedfunders Associate Network and no annual fees or expenses. There is also no obligation to invest in any of the deals. Once you join, the firm will send you investment opportunities and your participation is completely optional. All functionality, including deal docs, signatures, funding, and K-1s has been automated through Sydecar.
“This is a great opportunity for a new investor to get started in investing in startups with minimal risk. They have the opportunity to review deals but have no requirement to invest, so they can pick the ones they have an interest in and “get their feet wet,” said Chitester. “Then they can follow the company and see what early stage investing is all about.”
Chitester’s goal was to get 40 Associate Members in the first month and they exceeded that in the first week!! They already have 50 investors. Demand for is strong.
THE PLATFORM 💰
Sydecar, a frictionless deal execution platform for venture investors, is the platform of choice being used for the Seedfunders Associate Network. According to the Sydecar website, the platform “handles back-office operations for venture investors, automating banking, compliance, contracts, and reporting so that customers can focus on making deals and building relationships.”
Sydecar is not a public investing platform which means all investors must be approved by Chitester.
With offices in Miami, Orlando and St. Petersburg, Seedfunders has a unique focus on pre-revenue early-stage technology startups in Florida. They bring a different approach with mentoring and guidance for developing an MVP and bringing concepts to market. Seedfunders investors are committed to mentoring and giving back to the startup community. Their approved accredited investors are a huge asset to our investees.
THE INVESTORS 💰
Chitester at IDEA Showcase pitch night with ITEXPO in collaboration with South Florida Tech Hub.
Seedfunders is inviting new accredited investors who may be interested in participating in the firm’s deals to join.
Here is the link to get signed up with Seedfunders’ Associate Network: https://www.seedfunders.com/associate-network/