Seedrs Reports Biggest Month Yet for Secondary Transactions of Crowdfunded Securities

 

Seedrs is unique in the fact it has created a viable secondary marketplace for crowdfunded securities. While still rather small, where other platforms have struggled Seedrs has incorporated an effective trading platform that continues to iterate, evolve, and expand thus providing an element of liquidity to an asset class that is historical illiquid.

Today, Seedrs is reporting that April has seen the most amount of transactions since the marketplace was launched. Beyond the impact of the ongoing COVID-19 pandemic, Seedrs recently added several features and improvements including the removal of the £1000 share lot cap.

In total, £246,000 worth of shares were transacted during the April scheduled trading time. In the grander picture of things this amount is quite small but, over time, issuers are getting larger and more companies are listing securities offerings on the online capital formation platform.

Seedrs said that over £2.7 million worth of shares were submitted for sale and £1.2 million listed with the difference being due to certain eligibility requirements. The £1.2 million was split across 3,006 lots, of which 991 were sold. Seedrs recorded 323 sellers and 411 buyers across 157 businesses with 17% transaction rate by value.

In a blog post, Joel Ippoliti, Seedrs Chief Product Officer, explained they continue to improve the trading process with each transaction period.

Forthcoming improvements include:

  • Partial share lots – allowing buyers to offer to buy smaller ‘pieces’ of a share lot
  • Allowing buyers/sellers to connect anytime (even when the market is closed)
  • Allowing buyers/sellers to place bid/ask notifications and price negotiate

Ippoliti reports that for May’s market, Seedrs already has £2.1 million worth of shares submitted for sale with over 50% submitted from the new auto relist feature.

 

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