Seedrs reaches platform investments milestone

By Victor Chatenay

The UK-based online crowdfunding platform has surpassed £1 billion ($1.28 billion) in total investments recorded on the platform, up from £500 million ($641.2 million) at the end of 2018, per a company blog post.

Deal activity by deal stage
Seedrs reached $1.28 billion in platform investments.
Insider Intelligence

Launched in 2012, Seedrs' entirely digital process enables businesses in the UK and European Economic Area to sell equity to both individual and institutional investors. Major fintechs have raised capital on its platform, including neobank Revolut and robo-advisor Wealthify.

Seedrs saw strong investing activity in 2020 after adapting to new challenges brought by the pandemic. Following an initial investment decline in mid-March as both businesses and investors reeled from the first outbreak, Seedrs launched new initiatives to drive platform activity.

It first enabled early stage firms to have their capital raised on its platform matched by the government's Future Fund program, completing 26 such campaigns. In July, Seedrs partnered with Insurtech UK, making it the go-to crowdfunding platform for the trade body's 70 insurtech members. Then in August, Seedrs allowed sellers to change the price of their shares on the secondary market, causing secondary share trading to jump 20% versus earlier months.

It has since expanded the secondary market to all private businesses, not just those that initially sold their shares on Seedrs, further increasing activity. As a result, Seedrs reached £217 million ($278.3 million) in 2020, based on our calculations, a drop from £283 million ($363 million) in 2019 but solidly above its 2018 level at £200 million ($256.5 million).

Its upcoming merger with UK competitor Crowdcube should help Seedrs better capitalize on fintech startups' dire need for funding, further driving the platform's investment volumes. Once complete early this year, the combined entity will be one of the world's largest private equity marketplaces, with over £2 billion ($2.55 billion) in crowdfunding campaigns under its belt, per TechCrunch.

Following reduced European funding in 2020, the combined platform will present an additional source for early stage fintechs to raise vital capital. Crowdfunding has the added benefit of converting customers into stakeholders and strong advocates for the business, creating a stickier customer base that can be leveraged to attract more VC funding. As such, the combined entity will turbocharge investment activity in the coming months, and likely facilitate more than £300 million ($384.7 million) in platform investments within the year, per Insider Intelligence forecasts.

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