Leading UK crowdfunding platform Seedrs has distributed an email indicating it has transitioned to a virtual operation as employees are now working from home. The company said that as an online business the company was able to migrate to a remote business with “very minimal disruption.”
“Investors and entrepreneurs will continue to receive the same high level of care and customer support as normal throughout this period,” said the company.
Seedrs said they have been prepared for a downturn, and they expect one like this to “create competing forces”:
“Given the long-term and relatively uncorrelated nature of our asset class, many investors may see this period as an optimal time to deploy funds into growing private companies, especially where valuations are reasonable. At the same time, other investors are likely to step back from investing altogether and choose to hold their current positions and cash during this period. It is difficult to know what the balance will be between these two forces, but in general, we expect the platform to remain highly active. If you have been considering raising capital with us, or you are a portfolio company that may need to raise additional capital during this period, we are here to support you, and we will do all that we can to ensure you receive the funding you need.”
At least anecdotally, Seedrs said some of their portfolio companies are receiving record levels of orders. Most likely, these are firms that provide delivered services or tech that facilitates remote operations. Seedrs cautioned that some firms will see their business decline and asks that investors “be patient” with these firms.
“…we hope you will give strong consideration to investing in them and supporting their journey back to growth.”