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Seedrs

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The smart place to raise capital and invest in growth businesses

EIS

Location
GB London, United Kingdom
seedrs.com

Categories: Finance & Payments Mixed Digital/Non-Digital Mixed B2B/B2C

Investment
sought:
£500,000
Discount
offered:
20.00%
Funded 2 Oct 2019
Investment
amount:
£4,396,210
Valuation
(pre-money):
Convertible
  • Idea
  • Team
  • Updates
  • Investors 2,724
  • Discussion
  • Documents

Learn more about convertible campaigns.

Idea

Introduction

Seedrs is a leading European marketplace for private company investment. We operate an online platform which serves growth investors and growing businesses:

(1) INVESTORS: We provide investors of all shapes and sizes—including retail, intermediary and institutional—with a transparent, straightforward and cost-efficient way to invest in the equity of private companies.

(2) BUSINESSES: We offer growing private companies—from seed-stage to pre-IPO—access to a broad base of investors who can provide patient capital together with community engagement.

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We have grown very quickly, at 71.5% p.a. revenue growth over the last two full years, with very ambitious plans for the future.

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We recently announced that we had agreed terms with two of our institutional shareholders for a £4.5 million investment into the company (please see the Overview of Terms document in the Documents section for full details on the investment terms). This investment will help us finance our next stage of growth in advance of a major international push. We are now inviting our users and supporters to join in this funding round and become a part of our journey.

Intended impact

We believe that the equity of private businesses is a highly compelling asset class. A diversified portfolio of these companies has the potential to outperform most other types of investment.

The market for private company investment, however, continues to be hampered by complexity, lack of transparency and cost, creating substantial challenges for investors and businesses alike.

Seedrs changes that. Unlike other platforms in the market, Seedrs is building the capabilities to solve these limitations with the aim of becoming the most liquid and trusted marketplace for investing in private companies, globally. We are building our marketplace in order to bring private company investment the same type of efficiency and simplicity that have long existed in the markets for other asset classes. In doing so, we aim to become the infrastructure layer of private company investment, giving investors a straightforward and trusted way to deploy their strategies in this asset class and providing companies access to a deep and diverse pool of capital.

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Substantial accomplishments to date

Since our launch in 2012, we have played a key role in defining and building our section of the capital markets. In the process we have become one of the largest and most prominent firms operating in it.

Screenshot 2019 10 04 at 14.43.34

ACHIEVEMENTS: Some of our achievements include:

● Over £400m investment deployed into nearly 900 deals
● Over 85,000 individual and institutional investors have made over 330,000 investments through the platform
● 12% IRR across all deals as of latest Portfolio Update, with the top decile of portfolio investors (those investors with 20 investments or more) achieving an average IRR of 39%, all before tax reliefs.*
● First wave of M&A/public market exits (eight to date, with buyers including Apple, Debenhams and Aviva), and Seedrs Secondary Market has seen over 10,000 investor exits to date
● Value of carry pool roughly doubling each year

AWARDS: Year after year we are recognised for this success, and a few of our recent accolades and awards include:

● Winner, Finance Technology of the Year, National Technology Awards (2018)
● Winner, Equity Crowdfunding Platform of the Year in Europe, Corporate Intl Global Awards (2018)
● Winner, Industry Game Changer, Growth Investor Awards (2018)
● Listed, Fintech50 Hottest Fintechs in Europe (2018; 2017)
● Winner, Alternative Funder of the Year, British Small Business Awards (2017)
● Winner, Best Crowdfunding Platform, Shares Magazine (2017)

* See Seedrs Autumn 2018 Portfolio Update for full details and methodology of IRR calculation: https://portfolio.seedrs.com

5. awards  seedrs campaign

Monetisation strategy

Seedrs generates revenue through two sets of fees that align our commercial interests with our customers’ success:

1. Deal Fees. We charge a success-based commission to businesses who raise funds through us. Based on demand, we have recently added a new revenue stream by satisfying a need for a premium level of marketing support in connection with a business’s campaign. Collectively, these are the “deal fees” we earn, and they represent the primary source of our revenue today.

2. Investor Fees. We charge carry to investors on profits they make on an investment. We also occasionally earn direct fees to investors (generally in connection with one-off transactions). Although small to any one investor, over time we expect investor fees, including carry, to become a significant revenue stream as the portfolio matures and secondary market evolves.

As we continue to grow the breadth and value of our marketplace, we expect to increase revenue earning services and also introduce new types of recurring revenue.

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Use of proceeds

This funding round precedes what we expect to be a significantly larger, priced round in 2020. This larger round is designed primarily to drive two sets of initiatives:

1. MARKETPLACE: Our “Marketplace” initiatives are a series of efforts, which include our Secondary Market, AutoInvest, funds and others, to step change liquidity and customer adoption. These efforts will drive our move “Beyond Crowdfunding” and toward becoming a full-scale marketplace.

2. EUROPEAN EXPANSION: The new EU rules that will harmonise our regulatory framework in Europe are likely to be adopted in Brussels this autumn. This opens a unique window of opportunity to rapidly expand into a very underserved market, by launching our full pan-European effort, and in so doing, massively expand the size of our addressable market.

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The convertible round we are now raising allows us continue to investing in growth while we are raising the larger round. We also expect that it will provide us with sufficient capital to steer the core business to breakeven and operate profitably if the macroeconomic environment causes the larger round to take longer to raise than expected.

Picture1

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Investing carries risks, including loss of capital and illiquidity. Please read our Risk Warning before investing.

Investing involves risks, including loss of capital, illiquidity, lack of dividends and dilution, and should be done only as part of a diversified portfolio. Please read the Risk Warnings before investing. Investments should only be made by investors who understand these risks. Tax treatment depends on individual circumstances and is subject to change in future.

This webpage has been approved as a financial promotion by Seedrs Limited ("Seedrs"), which is authorised and regulated by the Financial Conduct Authority. It is not intended to be a promotion of any individual investment opportunity and is not an offer to the public. The summary information provided about investment opportunities on this webpage is intended solely to demonstrate the types of investments available on the Seedrs platform, and any investment decision should be made on the basis of the full campaign. Full campaigns are available to investors who have become authorised to invest on the Seedrs platform. All investment activities take place within the United Kingdom, and any person resident outside the United Kingdom should ensure that they are not subject to any local regulations before investing.

Seedrs does not make investment recommendations to you. No communications from Seedrs, through this website or any other medium, should be construed as an investment recommendation. Further, nothing on this website shall be considered an offer to sell, or a solicitation of an offer to buy, any security to any person in any jurisdiction to whom or in which such offer, solicitation or sale is unlawful. Seedrs does not provide legal, financial or tax advice of any kind. If you have any questions with respect to legal, financial or tax matters relevant to your interactions with Seedrs, you should consult a professional adviser.

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Seedrs Limited is authorised and regulated by the Financial Conduct Authority (No. 550317).

© Seedrs Limited 2019. All rights reserved. Seedrs is a registered European Community trademark (No. 008771537) and registered United States service mark (No. 85423072) of Seedrs Limited, a limited company registered in England and Wales (No. 06848016), with registered office at Churchill House, 142-146 Old Street, London EC1V 9BW, United Kingdom, VAT No. GB 208 3065 32. Seedrs.com is a website owned and operated by Seedrs Limited.

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  • About Seedrs
  • Our Team
  • Careers
  • Partnerships
  • Contact us

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  • Referrals
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  • Glossary
  • Feedback

Legal Info

  • Risk Warnings
  • Privacy Notice
  • Security
  • Terms of Service
  • Referral Fee Terms
  • Campaign Terms
  • Secondary Market Terms
  • AutoInvest Terms

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For information about how we use your personal data please see our Privacy Notice.
Seedrs small logo

Seedrs Limited is authorised and regulated by the Financial Conduct Authority (No. 550317).

© Seedrs Limited 2019. All rights reserved. Seedrs is a registered European Community trademark (No. 008771537) and registered United States service mark (No. 85423072) of Seedrs Limited, a limited company registered in England and Wales (No. 06848016), with registered office at Churchill House, 142-146 Old Street, London EC1V 9BW, United Kingdom, VAT No. GB 208 3065 32. Seedrs.com is a website owned and operated by Seedrs Limited.

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This business is eligible for SEIS relief - providing qualifying investors with income tax relief of 50% of their investment and certain other tax reliefs. Tax treatment depends on individual circumstances and is subject to change in future. Click to learn more.
This business is eligible for EIS relief - providing qualifying investors with income tax relief of 30% of their investment and certain other tax reliefs. Tax treatment depends on individual circumstances and is subject to change in future. Click to learn more.