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The Seedrs Secondary Market: Now open to all investors

The Seedrs Secondary Market: Now open to all investors

5th February 2018 by Thomas Davies

Since we launched our pioneering Seedrs Secondary Market last summer, over 850 share lots worth more than £250,000 have been sold across 166 Seedrs Alumni businesses. In a major advancement, we’re now opening up the secondary market to all investors who wish to purchase shares in Seedrs Alumni businesses.

A major next step

In one of the most important changes since our launch of the Seedrs Secondary Market we are opening up the Secondary Market to all investors, not just current shareholders. So now, anyone who’s authorised to invest on Seedrs will be able to purchase shares on the Seedrs Secondary Market. We believe this will greatly increase the volume of trading on the Seedrs Secondary Market and enable investors who may have missed out on an opportunity to invest in a business through a primary raise.

All trades will continue to take place under the nominee and, for now, will trade at ‘fair value’.

Creating the Seedrs  Secondary Market for investors has provided some liquidity in this traditionally illiquid asset class, therefore it was a natural development to provide investors with further opportunities to invest in the businesses who have raised on Seedrs.

We believe that the Seedrs Secondary Market, and the route to liquidity it provides investors, is one of the key reasons why we’re ‘The Most Active UK Funder of Private Companies‘. 

A quick recap of the Seedrs Secondary Market

We’ve always been careful to protect the interests of the investors and the companies who’ve raised funds on Seedrs so there are key measures in place, including:

  • All trades take place under the Seedrs nominee structure. So our nominee company continues to be the legal shareholder of the shares. But, instead of holding them on behalf of the seller, the nominee now holds them on behalf of the buyer.
  • There’s no bidding element. All shares trade at ‘fair value’, which is the price at which we mark them pursuant to our Valuation Policy.

Please note that investing involves risks, including loss of capital, liquidity, lack of dividends and dilution, and should be done only as part of a diversified portfolio. Not all shares will be eligible for the Secondary Market and, even if they are, the ability to buy and sell shares will depend on demand. Investors should not assume that an early exit will be available just because a secondary market exists.

Thomas Davies

Thomas Davies

I'm the Chief Investment Officer for Seedrs.

Digital Agency Kent