We are excited to announce the next step in our mission to become the world’s largest private equity marketplace with the launch of Seedrs Private Deal Room, a new feature built for Angel, High Net Worth and Sophisticated investors.
The traditional angel and private equity investment model is flawed. It’s inefficient, lacks diversity and is reliant on who investors or founders know. A traditionally offline and exclusive process that is reliant on investors having a deep network of connections to access the best deals, we believe that this area is ripe for even more technology-driven disruption.
Seedrs Private Deal Room will help allow a new generation of diverse entrepreneurs and investors to flourish, by providing more access on both sides of each deal.
Many founders may have an excellent product or idea, but no way to raise a family and friends round to get their venture off the ground. The traditional family and friends round is another exclusive model typically only reserved for well-connected founders. Seedrs Private Deal Room solves this problem with our brand new Introducer Campaigns, which allow Angel investors to request to be introduced to a fundraising business to invest directly in the business from £25k, and allows founders from any background to raise their first growth capital round.
By bringing the traditionally offline online and opening it up to all eligible investors, the days of the ‘old-boys’ network being one of the few ways to access a first round of investment, or access to the best angel investment opportunities, are gone.
Aside from being able to access investment opportunities at their earliest stages, eligible investors will also be able to use the Private Deal Room to invest in a broader range of opportunities that can’t be found on our equity crowdfunding marketplace. These include exclusive access to sophisticated late-stage and pre-IPO companies, as well as the chance to invest in venture funds, as seen in the hugely successful Passion Capital Fund III campaign earlier in 2021.
Investors can also benefit from exclusive access to limited allocation pre-emption rounds in existing Seedrs portfolio companies, facilitated by our industry leading nominee structure.
For founders at every stage of their fundraising journey, Private Deal Room will continue to lower the barriers to entry for accessing growth capital, and help them build more diverse and equitable cap tables.
Seedrs is giving more people more access, and the opportunity to generate meaningful financial returns, on both sides of each deal.
Jeff Kelisky, CEO of Seedrs, said: “Access to the right investment opportunities is as much based on who you know as what you know. We’re cracking open another layer of the murky investment world by bringing sophisticated opportunities, such as direct investment in private companies or VC funds, directly to professional investors. Our crowdfunding campaigns and secondaries market are just ways we’re making different aspects of private business investing more accessible. Now we’re doing the same with Private Markets. The opportunities on Seedrs Private Deal Room are more complex and higher risk, so are not suited to the everyday investor but rather those with access to capital and are used to sourcing and leading investments.“
What’s new for investors?
Introducer Campaigns are a new type of pitch allowing Angel investors who are seeking to invest a minimum of £25,000 to connect directly with companies seeking to raise their early funding rounds, typically in the pre-seed stage. Introducer Campaigns can also be used to help a company anchor a funding round before offering to the wider Seedrs investor base, or to generate the traction needed to begin tapping into Seedrs’ network of VC and Institutional partners.
These opportunities provide investors with access to share sale allocations in late stage companies, typically from Series B and above. With large companies trending towards staying private for longer, these Private Offerings allow eligible investors to access pre-IPO allocations in high growth companies, regardless of whether they’ve used equity crowdfunding in the past.
Venture Fund LP Opportunities
Industry leading venture capital funds such as Seedcamp and Passion Capital, which are structured as Limited Partnerships, typically target institutional investors with a minimum investment ticket size often above £50,000. Private Deal Room now gives High Net Worth and Sophisticated investors the opportunity to become a LP in these funds, providing access to an actively managed portfolio of companies.
Pre-emption rights are included as standard in Seedrs equity crowdfunding campaigns to ensure our investors don’t see their shareholdings diluted, and can participate in follow-on funding rounds (See explainer article here). In many cases not all the pre-emption allocations rights are exercised by investors leaving limited allocations available. These limited allocations in Seedrs portfolio companies will now be available to all investors on Private Deal Room.