The Seedrs Nominee Structure

Since our inception, Seedrs’ nominee structure has been a key part of our mission to democratise venture capital and create the world’s largest marketplace for private company investments. It has allowed us to better service the needs of investors and entrepreneurs; to innovate and build products such as our Seedrs Secondary Market; and to react quickly to changes and opportunities.

What does the Seedrs Nominee mean for your business?

Hold shares in your company on behalf of investors from Seedrs’ platform.

At its simplest, it means that Seedrs holds the shares in your company on behalf of investors from our platform. This is most beneficial when you have a large number of hundreds or even thousands of individuals investing in your company, as it significantly reduces the typical administrative burden that would be associated with managing so many investors. For the larger investors we also accommodate direct investments.

Act as nominee for the underlying investors

We act as nominee for the underlying investors, so your business only needs to deal with us for administrative matters like consents and shareholder votes. From an administration perspective, this is far easier than having to send notices and solicit approvals from hundreds of scattered investors. You’ll also be able to take full advantage of feedback, experience and enthusiasm the investors can offer. So it is the best of both worlds: the administrative work only needs to be done with us, while the substantive support can come from all of the investors.

Manage all the administrative work

As your nominee and legal shareholder, we will manage all the administrative work throughout the lifetime of your investment, including approving shareholder resolutions, reviewing legal documents, managing pre-emptions and exits. But this is not just about making your life easy, it also helps ensure your startup can raise further funding down the line

What’s the difference?

Without a Nominee

Hundreds of individual investors

No easy way to communicate with all investors

Instrument and pay for external lawyers. Self managed all HMRC and companies documents

With a Seedrs’ Nominee

One legal shareholder, Seedrs

Easy direct communication with its investors through the Seedrs platform

No external lawyers and Seedrs takes care of all the administrative paperwork

Key benefits for your business

1. Shareholder portal

Your Seedrs shareholder portal is a dedicated investor relations tool which you can use to update your investors, respond to questions from them in a discussion forum and reach out to them for support or feedback. Keeping your shareholders well informed about your progress by regularly updating them and responding to questions not only maintains a strong relationship which increases the chances they will invest in future rounds but also gives them the opportunity to contribute their expertise and use their networks to support you. In addition, the forum lets all Seedrs shareholders view and contribute to discussions, which means that you will be unlikely to have to answer the same questions whilst being able to take discussions offline if you choose.

2. Nominee voting and consents

We are very conscious that the founders and management of a company are the people who have the requisite knowledge, skills and expertise to run and grow the business – and investors will have invested in their ability to do so. This is why when it comes to voting, we will support the board of directors’ proposal unless there is reason to believe that it would not be in the best interest of investors to do so.

When considering what would be in the best interest of investors, our key concerns are to
(a) maximise return in the long term for investors, and
(b) ensure that investors are being treated equitably.

3. Tax relief

If your business is eligible for SEIS or EIS tax reliefs in the UK, we will take care of all of the paperwork for the application of relief and distribute the confirmation certificates to your investors once approved by HMRC to allow them to claim the tax relief.

We also provide them with a tax statement which they can download to cover the details needed for the claim across all their investments on Seedrs.

How else do we offer our nominee services?

Every business that raises a round of funding on Seedrs benefits from the nominee services mentioned above for many, if not all, of the investors in the round. In addition the Seedrs nominee structure can also be of benefit in the following ways:

Frequently asked questions

How does Seedrs make decisions when it comes to shareholder voting rights?
When will Seedrs investors be able to vote?
What information rights do Seedrs investors have?
What happens when a company exits?
What happens when a company winds up?
What happens when a company lists on the stock market?
What happens if Seedrs winds up?
SEIS / EIS tax relief

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