Seed funding is notoriously difficult to raise in Europe, with the shortage of specialised financiers being highlighted as a major cause for concern in a on London's 'Tech City' cluster. Many UK start-ups are being forced to go to the US for funding, according to the report.

is an online platform that seems to emulate in the US. Entrepreneurs can create a free listing for their start-up consisting of answers to questions on the feasibility of their idea, market and team, as well as how much money they are looking to raise in exchange for a percentage of equity.

Potential investors can browse the listings and pledge to invest between £10 and £150,000 per start-up directly through the Seedrs website. The company takes 7.5% of all funds raised by start-ups, as well as 7.5% of any return that investors make beyond their initial level of funding.

If entrepreneurs reach the full amount within three months then Seedrs goes to closing. However, if the funding target is not met, the pledges are returned to investors and all parties walk away without losing or paying anything.

Unlike some other crowd investment services, Seedrs continues to manage the equity on behalf of the investors, acting as a middleman to broker the relationship between the start-up and investor. The firm is authorised and regulated by the Financial Service Authorities (FSA).