Seedrs

Seedrs is a leading European equity crowdfunding platform that allows individuals to invest in startups alongside venture capitalists. It was the first platform to offer a secondary market, allowing investors to buy and sell shares in private companies before they exit. Seedrs has funded notable companies like Revolut and Perkins.

The platform uses a nominee structure, meaning Seedrs holds the shares and votes on behalf of the investors, ensuring that even small investors have their rights protected via a shareholder agreement. Although acquired by Republic (US), Seedrs continues to operate its distinct platform for UK and European investments. It is a legitimate avenue for high-risk, high-reward angel investing.

Frequently Asked Questions

1. specific minimum investment?

You can start investing with as little as £10 or €10 per campaign. This accessibility allows you to build a diversified portfolio of startup investments with a relatively small amount of capital.

2. Can I sell my shares?

Seedrs offers a Secondary Market which opens for one week every month. During this window, you can list your shares for sale to other investors, providing a chance for liquidity that is rare in private equity. However, a sale is never guaranteed and depends on demand.

3. What fees do I pay?

Seedrs charges a 1.5% fee on each investment you make (capped at £250). Additionally, they take a 7.5% "carry" (commission) on any profit you make when the shares are eventually sold or the company exits. This aligns their success with yours.

4. Is it safe?

Seedrs is authorized and regulated by the FCA in the UK. However, investing in startups is inherently risky, and you should be prepared for the possibility that the company fails and you lose your entire investment. Seedrs performs due diligence, but success is not guaranteed.

5. Do I get tax relief?

Many UK-based campaigns on Seedrs are eligible for EIS (Enterprise Investment Scheme) or SEIS tax relief. This can offer significant tax breaks to UK taxpayers, protecting a portion of the investment against loss. You should consult a tax advisor for specifics.