Thomas Davies, investment director at Seedrs, said that start-ups as an asset class can be very profitable, and net returns from angel investing in recent times have significantly exceeded other asset classes, including government bonds, property and shares.

"In theory, this should allow firms to offer very small stakes in their companies or projects to a mass audience without exposing that audience to excessive risk, widening the availability of funding for many," he said, speaking at the Birkbeck third annual Business Week.

Davies said that a wide range of start-ups can seek capital through Seedrs, including high-growth, technology-driven ventures as well as more traditional businesses like retail stores, restaurants and professional services firms.

However, participating start-up must be UK-registered and must be pre-revenue, meaning they are not yet making money from their core business model. Seedrs hopes to expand into the rest of Europe in six to nine months.