Seedrs launches first ‘passive’ fund

By Roger Baird on Friday 4 January 2019

Savings and Investment

The crowdfunding site will set up a fund containing 100 start-ups chosen by an algorithm for investors.

Crowdfunding site Seedrs plans to launch its first passive fund allowing clients to back up to 100 small companies on its platform.

The start-up firms will be chosen by a computer algorithm used by the site, as part of a new investment product called EIS100 Fund.

This is Seedrs first passive fund, which allows investors to build a portfolio of young firms over a 12-month period requiring a minimum investment of £1,000.

The product is due to launch later this year, and is expected to range between £2m to £5m in size, according to a spokeswoman for the firm.

This fund is a change from the active investment strategy the platform favours, where investors review and back start-ups for themselves.

The site said the move increases the range of investment methods it offers to customers, allowing them to “build a diversified portfolio of companies”.

Seedrs has funded 732 deals, putting £503m of cash into start-ups since it was launched in 2012. These investments include new businesses such as Mr Lee’s Noodles, a healthier alternative to Pot Noodles and TransferGo, an international money transfer platform with over 700,000 registered customers.


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