By Emily Nicolle on 2nd November 2017
Equity crowdfunder Seedrs wants to introduce wealthy individuals to early stage equity deals as a digital alternative to EIS funds.
The platform has reported an increase in interest from financial intermediaries looking for early stage opportunities for wealthy clients to expand their growth investment portfolios.
Its recent partnerships with RBS, Fidor and the Law Society have proved enticing for the intermediary community, as well as Seedrs’ digital product features such as tax certificates and real-time portfolio performance.
In addition, the equity crowdfunding sector has become more attractive in recent years as Seedrs suggests that the potential for serious capital growth has increased, alongside the appeal of supporting innovation.
Data from Beauhurst shows that over £3.6bn was invested into equity deals in the UK last year, showing an increased appetite for start-up investing. Seedrs reported that it was responsible for completing 11 per cent of those deals, rounding up its total amount of deals funded to 540.
Under the new programme, a portfolio of EIS and SEIS qualifying investments on Seedrs will offer investors an alternative to discretionary managed EIS and SEIS funds. The platform will offer intermediaries a non-advised solution while handling all legal and tax admin online.
Adam Reeve, Investors Manager at Seedrs, said: “Investors and advisers are more conscious than ever about fees eroding portfolio returns, and achieving growth. Self-directed execution-only platforms for traditional asset classes, such as listed equities and bonds, have existed for many years and are a common route for sophisticated investors who wish to construct their own portfolios, without paying significant management fees.
“Previously there has been little or no equivalent for private equities, particularly seed and venture investing with only structured, managed products provided only to HNW investors. Seedrs offers this service.”