Seedrs was the platform that successfully created an effective secondary marketplace for securities issued on its platform. A trailblazer in providing liquidity for private securities, the platform scheduled one day a month to open its marketplace to match buyers and sellers. One of the reasons it was able to facilitate trading was its usage of a nominee structure created by its founder, Jeff Lynn.
In 2021, Seedrs was acquired by Republic, the largest online investment platform in the US. The acquisition formed Republic Europe, which is now the world’s largest securities crowdfunding platform.
Prices are set based on notional values provided by Republic Europe, in accordance with their valuation policy. Republic bases the price on information supplied by the company, which may increase share capital or raise additional money off-platform (and maybe not notify Republic).
Last month, Republic Europe announced that it would now operate the trading platform 24/7/365, creating an opportunity for around-the-clock liquidity in a historically illiquid asset class. Over 700 issuers are listed on the secondary marketplace.
Today, a seller may indicate a price they are willing to accept and the offer is live immediately. The sell order is live for 90 days. After that it will expire but can be renewed.
If a buyer is matched, you must accept or cancel the order within three days. If you are trying to paint the tape and really do not intend to sell, you may be penalized from participating for a period of time.
The Republic Europe Marketplace is interesting as round-the-clock trading arrives just as the UK is moving forward with the PISCES private securities marketplace. Perhaps Republic aims to apply to offer trading via PISCES? It would make a lot of sense as it already has the tech stack in place.
Regardless, secondaries are a key aspect of private securities, and Republic Europe appears to be the one platform to have gotten it correct.