SeedBlink is an emerging investment crowdfunding platform that is registered with the Romanian Financial Supervisory Authority and also approved under the new European Crowdfunding Service Providers Regulation (ECSPR) and thus allowed to issue securities across the EU. Under ECSPR, an issuer may raise up to €5 million in a given year.
SeedBlink has focused on pairing retail money along with professional investors which can help with vetting prospective firms.
According to SeedBlink’s Annual Report distributed by the company, in the past four years since inception, SeedBlink has raised €342 million for private firms – €67 million via its “community of investors,” with €28.8 million of this amount has been raised in Bulgaria. This represents more than 250 individual companies from 15 different countries. During 2023, SeedBlink reports 53 issuers funded.
In 2023, SeedBlink raised €180 million.
SeedBlink doesn’t only offer financing services but also equity management and secondary trading to enable liquidity on the platform.
In mid-2023, SeedBlink announced the launch of Nimity – an equity management service for issuers to manage their shareholders and cap table.
When the new service was announced, SeedBlink stated that Nimity is a “solution to help better navigate relations with stakeholders, employees, and future investors is needed in Europe. Less admin work and bringing transparency to [the] cap table are immediate benefits.”
Nimity now claims more than 8,000 company representatives and stakeholders and over 1,700 companies’ cap tables implemented, plus more than 500 ESOPs.
SeedBlink claims to be the first securities crowdfunding platform to launch in the CEE, opening first in Bulgaria, Greece, and the Benelux countries. The company has since broadened operations across Europe, including DACH and France. SeedBlink expanded its operations by acquiring Symbid – one of the earliest platforms to offer online capital formation in Europe.
Some additional bullets:
- 47.5% of active investors are repeat investors (made more than one investment through SeedBlink).
- 48% of the investors financed at least one company, and up to 8% of them had financed more than 10 companies and diversified their portfolios.
- The average investment ticket is €5,600.
- 50% of the total invested amount is from tickets of €10,000, and the largest investment ticket is €500,000.
- The largest portfolio value is over €900,000, with 49 investments made through SeedBlink’s platform.
- The average portfolio value of a retail investor is €6,200, and the average portfolio value of a sophisticated investor is €44,000.
SeedBlink categorizes securities offerings as follows:
- VC-backed rounds,
- Syndicates
- Community Stars – pre-seed to Series B ranging from €50k to €2M
During last year, Seed Funding accounted for 41% of funds raised.
The President of the SeedBlink Board of Directors, Andrei Dudoiu, said that in spite of all of the global challenges, such as war, inflation, and a potential recession, SeedBlink has “continued to support some of the most innovative startups in Europe that are building the products and services that will shape the world of tomorrow.”
SeedBlink CEO Carmen Sebe says they have entered 2024 with even more focus on making equity ownership even simpler.
“Looking ahead to 2024, exciting things await. This year is expected to be a better year for tech startups due to three core reasons: a growth rebound, potential increases in venture capital investment, and an optimistic IPO market.”
It is clear that online investment platforms serving private firms must provide services beyond funding rounds as both investors and shareholders demand additional services. While SeedBlink appears to be off to a strong start – especially in comparison to other ECSPR-approved platforms, in the end, all platforms must be successful beyond funding but also drive returns for investors while generating a profit for the platform. This will take time.