Pan-European equity crowdfunding platform Seedrs just announced this week they were offering a new type of security on their young platform. Convertibles have joined straight equity and crowdfunding funds as another option for both listing companies and investors. Thomas Davies, CIO of Seedrs, hit the studios of CNBC to share Seedrs’ perspective as to why leverage the new approach. Davies explains the key difference of their new type of investment that it is not debt but described as “deferred equity”. Davies sees one of the beneficial aspects of the convertible is pushing back the need to place a valuation on the company. The panel queries Davies regarding timing and possible dilution. Worth a quick watch.
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