Seedrs investment
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Discussion

ReaderScars

Original Poster:

6,087 posts

206 months

Monday 7th March 2016
quotequote all
I have new plans for a £1k investment that I made through Seedrs (through to Torch Apparel EU) about a year and a half ago, who are asking if I have a buyer lined up - which I don't. Can anyone give me any advice about how to proceed please?


Ozzie Osmond

21,189 posts

276 months

Monday 7th March 2016
quotequote all
See below from Seedrs website,

"Investing in early-stage businesses is extremely risky, and is not for everyone. If you choose to invest in businesses displayed on seedrs.com, you need to be aware and accept that (1) it is significantly more likely than not that you will lose some or all of the money you invest, (2) you will likely be unable to sell your investment, (3) even if the business is successful, you will be unlikely to receive any cash return on your investment for many years, (4) ordinary events in the life of the business can cause your percentage ownership in the business to decrease, and (5) if you choose to invest in early-stage businesses, you should do so only in the context of a broader investment strategy whereby the vast majority of your investable capital is placed in safer, more liquid assets."

Don't expect to see your money again any time soon - or at least, not much of it.

ReaderScars

Original Poster:

6,087 posts

206 months

Monday 7th March 2016
quotequote all
Yep, ta - hence the question of finding a buyer/interested party, in order to make a transfer/sale more likely. Any suggestions at all?

DonkeyApple

70,301 posts

199 months

Wednesday 9th March 2016
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ReaderScars said:
Yep, ta - hence the question of finding a buyer/interested party, in order to make a transfer/sale more likely. Any suggestions at all?
I'm afraid that this is the key point about these 'new' types of investments. They aren't actually new at all and the model has always been around long before fancy apps and websites.

If you want to sell the stock there is no exchange or exchange facility so you have to market the holding yourself and conduct the transaction. In short you will need to dupe a friend into believing the stock has upside value and buying it when you don't think has any upside value, hence are selling out.

All these types of off exchange investments are Hotel California stocks.