SproutUps provides access to startups that anyone can invest as little as $10. Startup companies can list to raise up to $100,000 from SproutUps members. All investing and funding activities are conducted on a government regulated funding platform. For a startup to become listed on SproutUps it must meet the following requirements:
- Valuations below SproutUp’s maximum threshold.
- Qualifications for listing on government regulated platform.
We specialize in assisting startups to raise capital through their initial founder’s and seed rounds. It’s the critical capital that is needed by a startup to develop their products and services and to become an operating business. The founder’s and seed rounds to invest in are the rounds for which the valuation or share price of a startup is at its lowest and potential for share price appreciation is at its highest. See chart below.
SproutUps is a social investing community (SIC). We educate our members as to how to invest as little as $10 into startups as well as how to start a company and then raise capital for their startup. SproutUps is a member of the Social Investing Communities Network (SICN).
The affiliated investing SICN member communities are listed below:
- Dynasty Wealth: Specializes in finding and providing seed round capital to startups that have the potential to multiply by 100 to 1,000 times in value within 5 years from when they are identified.
- Appsfunder: Specializes in finding and providing seed round capital for the development of smart phone apps. More than one million new apps are projected to be developed and hit app stores from 2017 to 2020.
- Trophy Investing: Excels at finding exceptional startup and early stage companies that have “trophy case” potential. For a startup to be added to this portfolio, its share price must have the potential to reach multiples within five years or less.
SproutUps is a key strategic member of the SICN. Our base of both investors and prospective startup companies is projected to be significantly larger than the other members of SICN for the following reasons:
- Mass appeal: With a modest $10 startup investment, SproutUps appeals to the mass market and most especially to the millennial generation. Many of the startups identified by the SICN’s investing community members (with their app &/or digital company startups positioned as the stars) have products and services which cater to the masses, most significantly to the millennial demographic. These types of startups are eager to include millennials as shareholders given the likelihood of the viral spreading of the startup’s products and services via social media due and owing to the millennials’ involvement. SproutUps is invited by each of the members of SICN to participate in all applicable millennial opportunities, in large part because of the greatly increased potential for success that their startups can have from utilizing this marketing strategy.
- Funding policy: SproutUps’ policy to assist in raising up to $100,000 for any startup that qualifies for listing on a government regulated funding platform enables it to attract an exponentially greater number of startups than the affiliated members of the SICN. Therefore, SproutUps provides the SICN members with a continuous pool of startup and early stage company prospects which can be added to their respective portfolios.
SproutUps’ liberal funding policy arguably increases the risk for its investor members. However; this policy correspondingly increases the rewards, given investments made at seed or founder’s round valuations have exponentially higher upside potential than investments made in later rounds. UBER is a great example. Assuming that one had invested $10 in UBER’s October 2010 seed round; the value of their investment was $134,500 on December 31, 2017. Had the investor waited until the risk was lower and had instead invested in the Series A, B, C and D rounds the returns would have been much lower. See table below.
Furthermore; the fact is that the risk for a SproutUps seed round startup is much lower than a startup which is not backed by SproutUps. It’s because SproutUps’ SICN allies can and will provide the funding for a startup’s later stage rounds. This substantially reduces the risks for both SproutUps’ investors and startups. The biggest risk for a startup is its ability to timely raise its next round of capital after it has gained traction from its founder’s or seed round funding.