Darksquare, a Provider of Alternative Investments to Individuals, Secures £197K+ via Seedrs

Darksquare, which aims to open up the world of alternative investments to individuals, has secured 98% (£197,350) of its £200,002 fundraising target from 82 investors (at the time of writing) with 23 days left in the firm’s crowdfunding campaign, carried out via Seedrs.

Located in London, United Kingdom, Darksquare  operates in the Finance & Payments sectors (Digital B2C). Incorporated in November 2020, the firm reports a Valuation (pre-money) of £1.8M; Type Equity; Equity offered 10.00%; Share price of £1.8; Tax relief; EIS.

The firm’s business highlights are as follows:

  • FCA Authorized (through Appointed Representative)
  • We estimate a target market of £1.05 trillion in the UK alone
  • Strong initial feedback from market research
  • Backed by multiple investors with experience in banking industry

Key features include: Secondary Market; Seedrs nominee min. £10.80 +; Direct investment min. £10,000.00 +.

As noted by Darksquare’s management, they’re looking “to open up the world of alternative investments to individuals.”

The firm added:

“Right now, unless you’re incredibly wealthy, you’re mostly limited to investing in equities, ETFs and cryptocurrencies. But there’s a multi-trillion dollar world of other asset classes out there that are, at present, mostly inaccessible to individuals. Ranging from assets such as distressed/special situations credit, to large ticket real estate items like forests/timberland, private islands, to wind and solar farms, carbon capture projects and many more.”

They also mentioned:

“We believe that individuals are more capable and more willing than ever to make their own investment decisions, so we’re not an investment advice or an investment management platform; instead we’re using crowdfunding to overcome minimum investment thresholds and open up these products to a wider market. Allowing customers to not only generate potential returns, but crucially, better diversify their investment portfolios.”

Darksquare further noted that they will look “to charge fees on the money invested via their site.”

Their plan is “to charge 1% upfront and then 1% annually as a management fee.”

Rather than charging cash management fees, they plan “to take 1% ownership of the asset every year, aligning their incentives with those of our customers.”

This means if an investment product performs well, they “get paid more.” This also ensures they “only list quality, well researched investments on their site.”

In the future, they plan “to launch a secondary market functionality where users can buy into or sell out of previously funded investments.” Once established, they “would look to charge trading fees on these transfers to generate additional revenue.”

The firm clarified:

“We will not sell user data or advertise on our site, we think it’s important that the user experience is as seamless as possible. Finally, we’ll also plan to generate a small amount of revenue from bid/offer spreads on the investments we list. For example, we might buy a stake in a wind farm for £495k and list it for £500k.”

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