Seedrs, one of the largest securities crowdfunding platforms in the world, has launched a Dutch facing section of its website as it positions itself to benefit from pan-European investment crowdfunding rules.
New rules were issued by the European Union in November of 2021. Currently, many platforms are working through the process of being approved by the national regulator in an EU member state to comply with the regulatory regime.
Seedrs has originated more than $2.4 billion (€2.2 billion, £1.9 billion) since inception and boasts a funding success rate of 93% and 15 exits to date. Under the new European Rules, issuers may raise up to €5 million across all member states. Seedrs will be able to augment this amount with a simultaneous raise in the UK where an issuer may raise up to €8 million.
Last year, Seedrs was acquired by US-based platform Republic following the failed merger with Crowdcube – its top competitor in the UK. The merger was blocked by the UK Competition and Markets Authority as it obtusely did not understand the economics of the securities crowdfunding market thus compelling Seedrs to look for another partner.
The merger with Republic will create the largest investment crowdfunding ecosystem in the world as Republic recently established a direct presence in Asia as well. In the US, Republic offers securities under the full stack of securities exemptions (Reg CF, Reg A+, Reg D) and has a growing list of verticals targeting various sectors of the capital markets. The merger should be completed within the next few months and expectations are for more trans-Atlantic securities offerings that are feasible as long as each issuer complies with domestic rules.
Seedrs notes that it has already raised €140 million from European firms thus providing a solid expansion for continental securities offerings. But Seedrs will not be alone in their efforts as there will be multiple platforms across the EU competiting for both issuers and investors. Crowdcube, a platform that has long had a presence in Barcelona, has already been approved by Spanish regulators to offer securities under the EU rules – the first platform to gain the EU qualification.
It's official! 🇳🇱
We're excited to help more founders and entrepreneurs around the globe realise their big ambitions.
Let's go 🚀
View the official web page here > https://t.co/F2mo58ATD9 pic.twitter.com/poyWFnmLWW
— R Europe (formerly Seedrs) (@join_r_europe) May 27, 2022
