From today, we’ll start rolling out a new feature that allows Seedrs investors to access their individual portfolio individual rate of return (IRR) from within their Seedrs Portfolio for the first time. This is a follow-up to the launch of our industry-first Portfolio Update, launched last Autumn, that details the characteristics and performance of Seedrs-funded deals.
We’ll be pushing out the feature over the next few weeks to all investors but, in the meantime, Seedrs users that have successfully completed one investment or more through the platform will be able to see the performance of their portfolio, as close as possible to real time, with a personal IRR on a tax-adjusted and non-tax adjusted basis.
IRR is the most common way to measure the performance of a portfolio of private equity or venture capital investments. This is a measure of annualised performance that demonstrates, in effect, how much the portfolio has increased or decreased in a year. Seedrs Portfolio IRRs show the annualised performance of an investor’s entire Seedrs portfolio based on their investments’ fair value. You can read more information about fair value here. It should be noted that the IRR figures largely reflect paper returns, which can go down as well as up in value, and that past performance is not an indicator of future results..
Here’s an example of what the Portfolio page will now look like (numerical data is based on an actual portfolio, companies listed are placeholders):
Jeff Lynn, CEO of Seedrs, said: “This exciting innovation arrives soon after Seedrs released its Portfolio Update and is another first for the equity crowdfunding sector. We see steps like these as a huge leap forward in transparency for the space.”
“What makes this metric so groundbreaking is that it gives the closest indicator of any given investor’s portfolio performance before the shares reach liquidity. This is an extremely important measure in an asset class where the time-horizon for exits is generally upwards of five years and often even longer.”
Seedrs is the only such platform currently able to provide these metrics to investors because, as nominee shareholder on behalf of each investment, we have information rights in respect to our agreements with funded businesses that make it possible to collect the data necessary to calculate IRR.
