ICYMI – The Sunday Times Removes Inaccurate Article about Seedrs, Posts Clarification

In case you missed it, the Sunday Times has removed a questionable article published about Seedrs this past August.

In August, the Times covered the fact that Seedrs was in “advanced stages in a fundraising discussion”  as did Crowdfund Insider on the same day.

The report in the Times stated that trading in Seedrs shares had been “suspended” without noting this was a standard practice in advance of a new funding round as valuations can change.  Seedrs is a platform that facilitates secondary transactions of shares including its own from previous crowdfunding rounds. Seedrs challenged the report and the article appears to have been removed late last month under corrections and clarifications.

Seedrs was, in fact, in the process of raising additional capital and the following week CI wrote about a prospective £4.5 million funding round which was confirmed at the end of August.

The Times has posted a “clarification” stating:

“An article on the crowdfunding platform Seedrs (Business, August 11) stated that its shares had been suspended from its secondary trading platform during the course of a fundraising. The fundraising in question was part of its planned growth strategy and its decision to suspend its shares from trading on its own secondary platform was standard procedure for any company on that platform when a fundraising deal was nearing completion. We understand that since the article was published, Seedrs has raised £4.5m of additional capital. We are happy to clarify the position.”

Seedrs has also publicly stated that it expects to “achieve overall profitability, and if we choose not to invest in growth, we would expect to breakeven during 2020.”

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