What is a nominee?
In order to ensure our investors receive the professional-grade protections they deserve and entrepreneurs dont end up with messy and hard-to-manage cap tables, we act as the nominee shareholder on behalf of each investor on Seedrs. In short, this means:
Investors do not need to worry about administering their investments. We ensure that their investments are protected using both the statutory provisions afforded to shareholders as well as the professional investor grade, contractual protections that are in place under our subscription agreement with each company.
Funded companies do not have to worry about having to manage numerous individual investors. We are authorised to take votes and issue consents on behalf of each Seedrs investor, which results in an efficient and streamlined process for all parties. This also means any early-stage business that has raised investment through Seedrs will not face problems with a large cap table when raising later-stage funding from other sources. In the absence of our nominee approach, the difficulty in obtaining consents and other signatures from each individual investor could make it nearly impossible to raise further finance; under the Seedrs structure, we take care of those consents and signatures the same way a single institutional investor would.
If youre still not sure about what our nominee structure means for how we administer investments into early-stage business, you should take a look at this blog post.