Ten-year-old securities crowdfunding platform Seedrs has recently posted a blog on platform capital raising, which highlights sector growth. Seedrs reports that it took 8 years to top £1 billion in funding raised, but two years later, Seeders has doubled that amount surpassing £2 billion this month (or £2.1 billion according to their website).
The money raised represents 1722 deals, with probably a good number of follow-on rounds. Investors come from 90 different countries to back these private ventures.
While not all of these early-stage firms will generate significant returns for investors, some do – just like a professional VC expects. At the same time, the money invested in these companies gets spent on running a business, jobs are created, and employees gain valuable experience in the real economy. A thriving, innovation-driven economy that generates wealth and prosperity by default entails risk.
The rapid growth in the past two years has a good chance to accelerate following Republic’s acquisition of Seedrs, that will enable more cross-listed offerings and a broader market of both investors and issuers. Republic’s aim is to be a global investment crowdfunding platform and with Seedrs well established in both the UK and Europe, this mission is on track.
Jeff Lynn, co-founder and Chairman of Seedrs, commented on his firm’s progress, noting that when they launched, the goal was to “democratise private capital and remove the barriers that had long kept businesses from being able to maximise their fundraising potential as well as bring investment opportunities previously off limits to retail investors.”
Jeff Kelisky, CEO of Seedrs, said the company’s performance validates “all that hard work” as they focus on building a truly global investment platform:
“It really is the most revolutionary time for Seedrs and I can’t wait for our next chapter.”
While the Republic deal is still working its way through the regulatory process, it should close before the end of the year. It will be interesting to see what management has in store for the combined operation. You can expect more/bigger deals, expansion of the secondary market, and more opportunities for retail investors.