Seedrs Announces 2017 Equity Crowdfunding Campaign Predictions

Just a month and a half into the new year, UK-based Seedrs announced its predictions for equity crowdfunding campaigns in 2017. While sharing details about last year’s successes, the Seedrs team stated:

2016 was a record-breaking year for Seedrs with over 134 deals funded and over £85 million invested into campaigns. We were also named the most active investors into private companies in the UK, according to Beauhurst. Industry wide, equity crowdfunding has entered a real coming of age period in the UK, outperforming private equity investment in high growth companies. And the number of co-investments between the crowd and VC firms are on the up. 2016 also saw deals get a lot larger with raise sizes increasing each quarter across the year. Companies like Veeqo (who originally raised a seed round of £30,000 in 2013) returned to the platform to raise series-A size rounds and contributes to the £780,000 average raise size that rounded off Q4.”

The funding portal went on to reveal its predictions:

  1. Rise of co-invested deals:

    “We expect to see the continued rise in co-investments. We’ve already built a sizeable list of co-investment partners (who frequently invest on the same terms of the crowd) featuring Draper Esprit, Unilever Ventures, Ascot Capital and Zoopla, among others.”

  2. Size of raises will increase on average, but SEIS and EIS will still be huge deal-makers for smaller rounds:

    “We’ll still see a continued rise in the size of deals, especially with more co-investment partners coming in, but SEIS and EIS will still be massive investment draws.”

  3. Investors will continue to diversify:
    “Investors will still look to maintain diverse portfolios. Our Portfolio Update shows that investors who have portfolios containing more than 10 investments don’t just stick to any one industry. We expect this to continue as investors build educated portfolios to minimize risk and maximize potential return.”
  4. 2017 will see the rise EdTech, MedTech and A.I.:

    In 2017 we expect to see more from Education Technology and Medical Technology leveraging the power of equity crowdfunding as these industries get further opened up to disruption from the earlier players. We also expect to see a boost in Artificial Intelligence companies looking for funding as the technology required to get a business in this space off the ground gets cheaper and more accessible with real-world, consumer-facing applications becoming more feasible.”

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