The following financial promotion is unchanged since its approval on 18 May 2008. However, since then, the answers to FAQs 6 and 9 have become somewhat outdated. Up to date information is available on request.
- Why are you 'crowd-funding' SEE Ltd?
- How much are you seeking to raise?
- Will this investment give me a warm fuzzy feeling inside or a pay a good return?
- What are the chances of a 'SEE' future?
- What is SEE Ltd's business model?
- How much do companies pay for SEE Ltd's services?
- Why not borrow from a bank or seek investment from 'angel investors'?
- What is the money for?
- How much have you already spent?
- What are your credentials?
- What do others think about SEE Ltd?
- Are you sure that £200,000 is enough?
- Is it possible to donate as well as invest?
- Would it not be better to be a charity or a not-for-profit company?
- Are you selling loans or shares?
- What is the maximum and minimum investment?
- What will investors get in return?
- How do I receive the terms of offer?
- Will the return to investors be diluted when more people invest?
- What are the repayment terms?
- I like the company and its aims but I don't have enough money, can I buy a smaller debenture?
- Is my investment tax deductible?
- What are the risk factors?
- Wouldn't investors make more money investing in oil?
- What happens if the debentures are under-subscribed?
- Or over-subscribed?
- What happens to investors' money if the company fails?
- Why should investors trust you?
- What's the best case scenario?
- And the worst?
- Can I speak to a human before deciding on whether to apply for the terms of the offer or to find out more about the business?
- I'm convinced. How do I invest?
- I am simply unable to invest, what else can I do?
1. Why are you 'crowd-funding' SEE Ltd?
1. To raise money
2. To raise awareness
3. To widen the 'ownership' of the concept
2. How much are you seeking to raise?
£200,000.
3. Will this investment give me a warm fuzzy feeling inside or a pay a good return?
Both we hope. This investment provides a genuine opportunity to build a more sustainable and equitable future, that is one where:
- People can easily identify businesses with credible SEE policies and practices;
- Businesses are transparent, accountable and trustworthy, and clearly and honestly describe both their successes and failures in addressing SEE issues;
- Businesses do not greenwash (click FAQ#5 here for more about this menace);
- Businesses compete on the basis of their commitment to best SEE practice and innovation as well as on the price and quality of their goods and services;
- Our economic system is pro-business, pro-planet and pro-people.
As made clear in FAQs 23 and 27 below, this investment is not without risk. However, as is common for an early stage business, a high return is quite feasible. But the thing that truly distinguishes this opportunity is that it provides a unique means to effect significant, positive change in the world.
4. What are the chances of a 'SEE' future?
Good. There is cause for optimism because we have the basics: People are increasingly concerned about SEE issues. More and more businesses understand this. People are willing - and increasingly have the tools - to identify and support the best companies and thus encourage more sustainable ways of doing business. Sustainable practices can become the most profitable option for business.
The fundamental aim of SEE Ltd is to act as a catalyst in this.
5. What is SEE Ltd's business model?
We charge companies fees for the services we provide:
- Our evaluation service helps companies better understand the range of SEE issues that affect them
- Our benchmarking service helps companies assess their performance on SEE issues and prioritise areas for improvement
- SEE What You Are Buying Into accreditation helps companies communicate their policies, practices and values, and enables them to demonstrate that they are transparent and accountable on SEE issues
6. How much do companies pay for SEE Ltd's services?
The fees we charge are set out here. The average total fee paid to the end of 2007 (when the evaluation fee and licensing fee were combined) was just over £250. The average total fees paid by accredited SEE companies so far this year (again for evaluation fee and licensing fee combined), including pre-launch 50% discounts, is £1,620. (The discount period ended in February 2008 when SEEcompanies.com went fully live and the fees are now always charged separately.)
7. Why not borrow from a bank or seek investment from 'angel investors'?
This is not the sort of venture that is easy for banks to support, it is big on radical, world changing idea but short on underlying security. Further, none of the banks we have spoken to have really understood how or why SEE Ltd seeks high social, environmental and ethical standards and success AND a profit, how these twin objectives are combined and inseparable, and why or how we are seeking to create the circumstances in which this becomes the norm for other businesses. This is frustrating because our clients, our partners, and the vast majority of 'ordinary people' we speak, to all very firmly get it.
We believe there are people out there who are ready to fund a business that is intent on rewriting the rules, but finding them and completing a deal is hugely challenging. Indeed, in September 2007, after five years of searching, we found three 'angel investors' who agreed to 'match' invest £50,000 each. Despite delivering on all we promised over the subsequent months, two of them stunningly pulled out in February (rather, they finally admitted they did not actually have any money!).
Had we known 'crowd funding' was an option, we would have done it years ago. This is a fairly unusual method of raising funds but we believe it is a brilliant option for SEE Ltd and possibly many other businesses in a similar space.
8. What is the money for?
The money will be used to build company capacity. We will expand the team and invest in the sales, marketing and promotion of the SEE scheme.
Please note there is no restriction on how the raised funds can be spent. This stated, we intend to spend them during the next 12 months on additional staff and running costs. We anticipate that two thirds of sums raised will be spent on marketing the company's products and services to achieve greater market penetration.
9. How much have you already spent?
Over the past six years we have raised and spent £215,000: £110,000 cash was raised from 11 private individuals (sums ranging from £500 to £9,000); Bob Monks, the corporate governance and activist investor pioneer, recently invested £50,000; we have generated £30,000 in sales revenue; we have received £25,000 in grants.
10. What are your credentials?
We have achieved a great deal largely on the back of commitment to a big idea, a lot of hard work and cast iron belief in the value of the concept and our ability to make it happen:
- We saw an opportunity that no one else saw and dared to pursue it;
- We persuaded some of the most respected NGOs, campaign groups and government bodies in the world to work with us to create the SEE Questionnaire;
- We persuaded several pioneering SEE businesses that we could help them improve their SEE performance and enhance their SEE credentials, and signed them up as paying clients;
- We have created a framework that requires businesses to be able to prove the claims they make and demonstrate trustworthiness, that creates incentive for all businesses to pursue genuine SEE policies, and that raises SEE corporate standards;
- We have built a unique business and taken significant steps toward realising our ambitions despite being repeatedly told it could not be done.
11. What do others think about SEE Ltd?
Read testimonials from our clients here.
12. Are you sure that £200,000 is enough?
Yes. This is enough to operate SEE Ltd profitably and on a self-sustaining basis without the recourse to any additional funding. If we subsequently decide that the optimum rate of expansion has not been achieved and requires further funding, we will be able to attract additional equity investment or issue another debenture to fund faster growth.
13. Is it possible to donate as well as invest?
Yes it is. Investors get a proportion of the profits, donors do not. It is our preference to offer a potential return to those willing to back us (i.e. sell a debenture) as we are a business. But, if you refuse point blank to take anything in return, we will create a simple letter of agreement between ourselves and donors, enter into this agreement with you, and gratefully take your donation and put it to very good use (it would not be sensible to turn down free funding even if it was not our preferred option). If you would like to donate click here to contact us.
14. Would it not be better to be a charity or a not-for-profit company?
No. Business is not bad per se. We are proud to be a business. We take pride in delivering quality goods and services to our clients and know they feel similarly about their own businesses. One of our fundamental aims is to prove that businesses can pursue best SEE policy and practice and make a profit. In this we aim to lead by example. As a business ourselves, we have a much better understanding of the business environment and how to balance the often conflicting objectives of making a profit and operating in a socially and environmentally sustainable way.
Being a business is the best way to understand how business works. It is the best way for us to determine how business can be adapted and changed to value long-term success above short term profits and to combine the pursuit of profit with the pursuit of the highest SEE standards.
15. Are you selling loans or shares?
For legal reasons we are selling limited recourse debentures. Debentures are flexible debt instruments and can be issued on various terms. Broadly speaking they constitute a general debt obligation backed only by the integrity of the issuer, not by collateral.
16. What is the maximum and minimum investment?
There are two units, £500 and £5,000 units. Investors may buy more than one or buy any combination of the two units.
17. What will investors get in return?
We will pay investors a proportion of SEE Ltd's net profits over the next ten years. Net profits are defined in the terms of offer. At the end of the 10 year term, investors will in addition to any profits received be repaid the amount originally invested.
18. How do I receive the terms of offer?
These FAQs set out information which we feel would be interesting for those interested in our business generally and the way in which we are seeking to develop the business. If you would like to receive the terms on which we are offering debentures click here to request to do so and we will send them to you. Please note, by requesting these terms you are in no way committing yourself to investing. Please also note that as only a limited number of units are available we are limiting the number of persons to whom we will issue the terms of the offer at any one time.
19. Will the return to investors be diluted when more people invest?
No. Investors 'own' a set percentage of SEE Ltd's net profits for the next ten years. This percentage can not change under any circumstances.
20. What are the repayment terms?
Lenders will be paid annually for 10 years from the year ending 31 December 2011. An annual report will also be provided. Payments made will be subject to United Kingdom taxation, lenders will be responsible for declaring their income on their tax returns.
21. I like the company and its aims but I don't have enough money, can I buy a smaller debenture?
As it is, with an investment unit as small as £500, we could have up to 400 investors to keep informed so, for administration reasons, this is the minimum amount. We would not have a problem if a syndicate of investors wanted to take up one or more debenture units. Such a syndicate would need to have one person (or organisation) to act as the unit holder. We could not be involved in the management or arrangements agreed between members of a syndicate.
22. Is my investment tax deductible?
No. We have looked into this but it is not currently possible to make a debenture like this tax deductible for investors under UK law.
23. What are the risk factors?
Five possible risks:
- Global Mega Corp Inc. sues us out of existence for promoting transparency in business;
- Global Mega Corp Inc. funds a ‘policy think tank’ which unequivocally links the pursuit of business transparency and accountability with the hatred of freedom and the support of evil-doers;
- Businesses do not buy our services;
- Respected NGOs and SEE-authorities stop trying to get SEE issues onto the business agenda and stop assisting us with developing questions;
- Another organisation adapts one of its existing initiatives to become more like SEE, or a copy cat scheme emerges, creating a significant competitive challenge.
There is no telling what ‘Global Mega Corp Inc.’ might chose to do (Risks#1 and #2) but we are distinctly and proudly pro-business so it is unlikely that we will offend ardent fans of the free market.
Our services provide valuable and cost effective solutions for businesses to minimise their costs and risks and to maximise trust and customer appeal. We have a simple ‘do more for less’ proposition and, as such, we are largely ‘recession proof’ (Risk #3). Some clients sign up because their strong values demand it, others because they are seeking a cost effective solution to a variety of SEE-related problems, most are driven by a bit of both.
Leading NGO’s, Government Agencies and other authorities have invested their knowledge and expertise in the development of the SEE scheme because they wish to see business addressing SEE issues and greater transparency and accountability in business. We do not anticipate this attitude changing (Risk #4). In fact, if anything, we feel our network of SEE Partners would prefer to go further and we are in discussions with ever more diverse potentially collaborative agencies.
There are other accreditation schemes, indexers, benchmarkers and companies providing consultancy-like services (Risk #5). However, no other scheme works with the unique, symbiotic combination of business, NGO and campaign groups and consumers and no other scheme covers such a broad range of SEE issues. No other scheme is focused on the whole company rather than a single product or a means of production. We have a user-friendly, authoritative and functional set of tools and a body of knowledge that would be impossible to replicate.
24. Wouldn't investors make more money investing in oil?
That is hard to say. Investing in oil companies is likely to pay you a reasonable return. But if SEE Ltd achieves just a fraction of what is achievable, there is every chance of making a healthy return on your "limited recourse debenture" too.
25. What happens if the debentures are under-subscribed?
We still do all the things we are planning but rely more on organic growth so it will be slower. There is no minimum amount that we need to raise. We intend to keep the offer open until we have reached our fund raising target and are confident of achieving this amount in due course.
26. Or over-subscribed?
Debentures may be offered again in a subsequent funding round. They are offered now on a first come first served basis now so investors should not delay!
27. What happens to investors' money if the company fails?
The worst case scenario is that investors could lose all their money. This is quite possible but we feel unlikely given the company is beyond the total failure stage because its products and services are to a great extent proven.
28. Why should investors trust you?
We are a trustworthy bunch, ask our clients and our partners, many of whom we have been working for the past six years. In any event, the investments will be made on the basis of a legal agreement with each investor.
29. What's the best case scenario?
SEE Ltd continues to delight and impress its clients and signs up many new ones. There is a broad public awareness and understanding of SEE What You Are Buying Into and related products and services. The numbers of users of our websites sky rocket. SEE What You Are Buying Into becomes the de facto standard for transparency, accountability and genuine business responsibility.
More and more companies realise transparency and accountability on a broad range of SEE issues is not only a reasonable expectation but also good for business. All businesses work out how and when they can eradicate unsustainable practices and increase their positive SEE impacts while producing excellent goods and services. Businesses attract customers because of their genuine SEE commitments, policies and practices. Businesses innovate for the public good. We all live happy, sustainable, intellectually-defensible lives and make sustainability a viable option.
30. And the worst?
People do not use their voice and their SEE values and aspirations count for nothing. We are stuck with an economic system that is pro-business but increasingly anti-people and anti-planet. We end up with the businesses we deserve.
Businesses continue to claim to be concerned about SEE issues while at the same time exacerbating the global problems we face. Public distrust grows and people become more cynical. Power and influence concentrates in fewer and fewer people and organisations.
The wealth gap widens, the disadvantaged and desperate are cut further adrift, those at the top of the pile build higher walls round their estates and edit out the poverty and suffering of others around them. Unsustainable lifestyles are justified on the basis of rights, getting on in life and just deserts for hard work.
The issues become more divisive. Those that do understand the problems but are unable to change or feel over-whelmed find comfort in disputing the ever more indisputable evidence of the havoc we are wreaking, and become more determined, shrill and ostentatious in their over-consumption. Optimism in our ability to rally together to tackle SEE problems evaporates.
Catastrophic climate change destroys the environment beyond repair. There is mass population displacement, bloody conflicts break out as a result of resource scarcity, pollution makes being outdoors at first unpleasant and then unbearable. The natural wealth we inherited, the millions of areas of paradise all around the planet, are lost and gone forever.
(NB While the worst case does not bear contemplating for too long, we ARE an optimistic bunch, see FAQ#4 above and more about our philosophies and beliefs here.)
31. Can I speak to a human before deciding on whether to apply for the terms of the offer or to find out more about the business?
Yes call Michael on 020 3372 4504 (+44 20 3372 4504 from outside the UK) or send an email to info@SEEWhatYouAreBuyingInto.com
32. I'm convinced. How do I invest?
If you are interested in receiving the terms of the offer click here.
33. I am simply unable to invest, what else can I do?
Believe your voice can be heard. Believe that there are businesses out there that are also passionate about SEE issues. Be conscious that, ultimately, you will always have to buy some stuff from somewhere in order to survive and it would be best to buy from a business that is passionate about SEE issues rather than one that is not or, worse, simply pretends to be.
Be confident that your own passion for SEE issues and sustainability is about the sanest, smartest, most forward thinking kind of passion there is. Banish apathy, indifference and doubt: you really can effect positive, lasting change.
Tell your favourite companies that you think it would be great if they were fully transparent and accountable on a range of SEE issues, that this would promote a more SEE and sustainable future. Ask companies to do what they can to bring about the fundamental change needed to properly tackle and overcome global SEE issues.
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