A note from Jeff Kelisky, CEO, Seedrs.
I’m excited to announce that this month, Seedrs became licensed under the new EU regulation for equity crowdfunding providers that will guide how we and our industry peers operate in the region for the next decade, and beyond.
On the face of it, that may not seem like huge news to many of you. After all, Seedrs has played a significant role in the European startups ecosystem for over a decade and in that time we’ve supported companies from more than 20 countries across the continent. But, even though this is an evolution rather than a revolution, in several ways, this is a pivotal moment for our business and for the global (yes, global) startups ecosystem. Let me explain why.
To date, Seedrs has had to work in individual European markets on a country by country basis. Operating in this fashion involved complex and restrictive rules around marketing and sales (specifically when talking directly to investors) which meant that it was often an inefficient and challenging process. This new regulation, by creating a unified regulatory approach, levels the playing field for the industry and lays the foundations for a thriving sector that is best able to support bustling European startup hubs.
We are very excited about the clear opportunities this new authorisation will afford us. Firstly, this new regulation, executed through our proprietary platform and legal framework, makes it much simpler for us and better for fundraising businesses to enhance the quality of offerings and services we provide to our investor community.. As we begin work under this new set of rules, businesses from across Europe such as Heliac in Denmark will have unprecedented access to capital from cross border investors.
Secondly, we’ll be able to provide European investors with unparalleled opportunities to invest in the businesses that are building the products and services that will shape the world of tomorrow. We regularly hear from investors that they see the long term value in a diversified portfolio that includes investments in businesses from across geographies as well as industries, stages and sizes. This new regulatory framework makes it much simpler for us to continue to enhance the quality service we provide to our investor community.
Finally, Seedrs, as part of Republic – our parent company and the world’s largest private investing platform – will be able to take a leadership role in building a truly global democratised future of finance, ensuring everyone, everywhere has access to high quality investment and ownership opportunities. As our globalised economies progress over the next few years, the largest funnel of capital into the majority of sectors and asset classes will be through individual investors. To date, efforts to broaden access to financial products have often been disjointed and unsystematic. In order for retail investors around the world to participate meaningfully and at scale, legacy financial infrastructure needs an overhaul. This new regulation is a big step towards achieving this in Europe.
I’m excited about what the future holds for us. But most of all, I’m excited to see how this new regulation accelerates innovation in Europe, in terms of both capital formation and private liquidity for all sectors and investor groups. Watch this space.
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