By Ryan Weeks on Tuesday 5 September 2017
Equity crowdfunder opens pre-registration for its own on-platform fundraise.
Once again, individual investors will be given the chance to back Seedrs, on Seedrs. Fundraises of this kind are commonplace within the UK’s equity crowdfunding sector – and are often snapped up rapidly by investors with alacrity.
Seedrs clinched a £7.5m Series A from acclaimed fund manager Neil Woodford’s investment trust WPCT and venture capital firm Augmentum Capital in the summer of 2015. It then capped the round off with a £2.5m crowd round that was £1.5m oversubscribed.
Yesterday, Seedrs announced a follow-on investment of £4m from Woodford. Among other things the money will be used to “scale campaign execution”, through a buzzword-blend of automation, machine learning and AI.
Today, Jeff Lynn, who recently stepped back as CEO of the firm, sent around a note to investors offering them the chance to pre-register their interest in an upcoming crowdfunding campaign for Seedrs, which again will be tacked onto to Woodford’s investment.
Exactly how large the Seedrs round will be is not clear, but should be revealed within the next few weeks, according to a spokesperson at the firm. Seedrs faces a regulatory cap of £10m in total fundraising for the round.
“We already have nearly 1000 crowd investors following raises in 2013 and 2015 and many investors were disappointed to miss out on our last round,” said Seedrs CEO Jeff Kelisky, commenting on Woodford’s latest investment yesterday. He said it was important to everyone at Seedrs to gain an agreement that allowed the firm to “open up an amount for the crowd”.
Pre-registration periods allow investors to signal their intent to invest in an upcoming crowdfunding campaign. When a campaign is oversubscribed, shares are typically allotted by random ballot.