Seedrs, a securities crowdfunding platform, has posted an update on its nascent Secondary Market.
Seedrs is one of the top online capital formation platforms in the UK that provides issuers with the opportunity to raise growth funding online while managing their investors following a funding round. In mid-2017, Seedrs launched its Secondary Market thus providing investors with a path to liquidity in an asset class that is historically highly-illiquid. While other crowdfunding platforms have attempted to launch a Secondary Market, Seedrs has successfully accomplished its goal with trading volume inching higher over time.
While still relatively small, the Secondary Market saw a record of 171 businesses trade shares during scheduled marketplace activity this month. According to a blog post by Seedrs, 1,371 share lots were transacted by 564 sellers sold to 637 buyers for a total value of £651,000. Seedrs reports that every seller this month generated a profit with an average return of £678. Seedrs schedules a day each month for transactions to take place.
Seedrs states that it saw the most demand on the Secondary Market since inception:
“… over £5.8 million worth of shares submitted for sale and £4.6 million listed (the difference being due to ineligibility) and our highest ever number of sellers at 1,900. The £4.6 million that was listed was split out across 4,226 lots…”
Seedrs continues to adjust the Secondary Market and add new features. For June’s opening, shares could be listed during market operations – instead of in advance. Over time, as the platform grows and more issuers raise capital online, market activity and affiliated liquidity should grow alongside Seedrs. Facilitating liquidity beyond a public offering or M&A – is a good thing for shareholders in Seedrs funded firms.
Last month, Seedrs announced a partnership with Capdesk, an equity management platform to enable issuers/shareholders to more easily manage the securities. It was also announced that firms not crowdfunded on the Seedrs platform but using Capdesk, may participate in the marketplace foreshadowing grander ambitions over time.
For July’s market, Seedrs reports that £4.2 million in securities have already submitted for sale from 1,546 sellers.