Yesterday, leading UK based securities crowdfunding platform Seedrs confirmed it had agreed to terms of a £4.5 million funding round. Crowdfund Insider reported on the investment earlier this month and now Seedrs has publicly confirmed that two of their major institutional shareholders have committed to the round.
Seedrs stated that the funding will come via convertible equity with a “substantially larger priced round” to follow in 2020.
It is important to note that existing Seedrs shareholders who participated in prior funding rounds will have the option to invest in the offering. Seedrs added that, contingent upon available space, the company hopes to “be able to open it to other Seedrs users as well.”
Complete details should be forthcoming soon.
Seedrs confirmed that their plan is to achieve overall profitability. This will be determined on how the company invests existing and future funds:
“…our core business is on plan to achieve overall profitability, and if we choose not to invest in growth, we would expect to breakeven during 2020 (with full-year profitability starting in 2021). However, as we have said many times, we believe that real value creation can only be realised by building a scaled marketplace. To deliver this requires investment, which is why we are raising capital.”
Seedrs added that they expect to have the resources necessary to expand their marketplace initiatives substantially while launching their “full-scale European operation.”
It will be interesting to watch the participation of the priced round and at what valuation. The UK is home to the most robust investment crowdfunding market in the world. Seedrs is one of a handful of leading platforms that services both the UK and continental Europe.
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