Discussion
Has anyone invested in a company through the Seedrs platform and had a 'result'?
Their website is very much geared up to take your money off you... I wonder how well they perform when the company you've invested in does well, and it's time to return some upside your way?
Very little info on what role they play if the company you've invested in goes public too, and what legacy rights they hold over administering your shareholding.
I'm quite up for punting a grand here or there at 'good ideas', and see why fledgling companies might be attracted by platforms such as Seedrs, but I just feel a bit in the dark about medium-long term investment administration.
Their website is very much geared up to take your money off you... I wonder how well they perform when the company you've invested in does well, and it's time to return some upside your way?
Very little info on what role they play if the company you've invested in goes public too, and what legacy rights they hold over administering your shareholding.
I'm quite up for punting a grand here or there at 'good ideas', and see why fledgling companies might be attracted by platforms such as Seedrs, but I just feel a bit in the dark about medium-long term investment administration.
V8mate said:
Has anyone invested in a company through the Seedrs platform and had a 'result'?
Their website is very much geared up to take your money off you... I wonder how well they perform when the company you've invested in does well, and it's time to return some upside your way?
Very little info on what role they play if the company you've invested in goes public too, and what legacy rights they hold over administering your shareholding.
I'm quite up for punting a grand here or there at 'good ideas', and see why fledgling companies might be attracted by platforms such as Seedrs, but I just feel a bit in the dark about medium-long term investment administration.
I have had a quick look and it seems that there work is done after the funding has been raised. You then have a share certificate(s) in the company/companies you have invested in and the normal rules apply. If this is the case it is the company/companies performance (not Seedrs's) that is important (and here you have to be careful - as with any SME equity investment) - to check the legals, dividend policy, etc. Their website is very much geared up to take your money off you... I wonder how well they perform when the company you've invested in does well, and it's time to return some upside your way?
Very little info on what role they play if the company you've invested in goes public too, and what legacy rights they hold over administering your shareholding.
I'm quite up for punting a grand here or there at 'good ideas', and see why fledgling companies might be attracted by platforms such as Seedrs, but I just feel a bit in the dark about medium-long term investment administration.
I don't believe they "administer" your shareholding at all, just make the introductions.
Obviously these are all high risk investments and will yield anything between a complete loss of everything (I imagine this is the most common) to just getting your original capital back (in rare cases) to making you a very small share holder in a business that many years later goes on to become incredibly successful and profitable (the minority).
DON'T invest anything if you can't afford to lose the lot and insist on the company providing proper regular (monthly) reporting, management accounts and projections. If these are not going to be made available then don't touch it. If they are but then stop then make sure this is a trigger for the return of your entire capital back - with interest.
It is possible to make a great investment return from investing in these companies, but it is rare and always only if you get everything right. If not you are likely to loose everything.
Seedrs is only interested in getting companies to request funds and you to put the money up. After that (unless someone knows otherwise) they are gone from the picture.
Cheers
JulianPH said:
I have had a quick look and it seems that there work is done after the funding has been raised. You then have a share certificate(s) in the company/companies you have invested in and the normal rules apply. If this is the case it is the company/companies performance (not Seedrs's) that is important (and here you have to be careful - as with any SME equity investment) - to check the legals, dividend policy, etc.
I don't believe they "administer" your shareholding at all, just make the introductions.
Obviously these are all high risk investments and will yield anything between a complete loss of everything (I imagine this is the most common) to just getting your original capital back (in rare cases) to making you a very small share holder in a business that many years later goes on to become incredibly successful and profitable (the minority).
DON'T invest anything if you can't afford to lose the lot and insist on the company providing proper regular (monthly) reporting, management accounts and projections. If these are not going to be made available then don't touch it. If they are but then stop then make sure this is a trigger for the return of your entire capital back - with interest.
It is possible to make a great investment return from investing in these companies, but it is rare and always only if you get everything right. If not you are likely to loose everything.
Seedrs is only interested in getting companies to request funds and you to put the money up. After that (unless someone knows otherwise) they are gone from the picture.
Cheers
Thanks. It's right that you've repeated the investment warning, and for me this is simply an alternative to playing on betfair I don't believe they "administer" your shareholding at all, just make the introductions.
Obviously these are all high risk investments and will yield anything between a complete loss of everything (I imagine this is the most common) to just getting your original capital back (in rare cases) to making you a very small share holder in a business that many years later goes on to become incredibly successful and profitable (the minority).
DON'T invest anything if you can't afford to lose the lot and insist on the company providing proper regular (monthly) reporting, management accounts and projections. If these are not going to be made available then don't touch it. If they are but then stop then make sure this is a trigger for the return of your entire capital back - with interest.
It is possible to make a great investment return from investing in these companies, but it is rare and always only if you get everything right. If not you are likely to loose everything.
Seedrs is only interested in getting companies to request funds and you to put the money up. After that (unless someone knows otherwise) they are gone from the picture.
Cheers
With regard to post-investment, they definitely do retain an intermediary role and any dividends are sent to them, an put in your Seedrs account, from where you can invest in other schemes or withdraw as cash to your bank account.
It's where a company moves through IPO that I'm keen to learn more... maybe that has yet to happen to a company for which Seedrs has secured investment?
Part of my job is investing in IPOs.
Once the stock is public, I strongly suspect that Seedrs role would be completely diminished.
New investors into the business (which is what you get in an IPO) won't accept some random third party holding onto divs for example.
Frankly, why they do it now is beyond me.
To be honest, OP - I am really not sure where you are coming from.
Once a Seedrs investment IPOs and if you were involved you have done the equivalent of winning the lottery. It's GREAT NEWS. There is literally nothing bad about it, for you.
If you don't sell your stake in the IPO itself, you may have a traditional "lock-up" which prevents a further sale for 180 days usually and then you are usually free to sell in the open market.
And even then quite often the minorities (which is you) don't have the lock-up applied in the first place - just the major holders/founders.
Once the stock is public, I strongly suspect that Seedrs role would be completely diminished.
New investors into the business (which is what you get in an IPO) won't accept some random third party holding onto divs for example.
Frankly, why they do it now is beyond me.
To be honest, OP - I am really not sure where you are coming from.
Once a Seedrs investment IPOs and if you were involved you have done the equivalent of winning the lottery. It's GREAT NEWS. There is literally nothing bad about it, for you.
If you don't sell your stake in the IPO itself, you may have a traditional "lock-up" which prevents a further sale for 180 days usually and then you are usually free to sell in the open market.
And even then quite often the minorities (which is you) don't have the lock-up applied in the first place - just the major holders/founders.
I realise how great a successful IPO is and that's why I took a punt on the company I did, as the chances of them achieving it were very high.
My concern is that if Seedrs currently manage my shareholding with the Ltd company, then they may carry that through to when the shares are 'upgraded' to plc ones. This will certainly only apply to Seedrs investors, not the wider investment community who buy at the point the company goes public.
I've asked Seedrs themselves the question, of course. Yet to receive a reply. But I'm also interested in hearing if anyone else has had a successful punt via their platform.
My concern is that if Seedrs currently manage my shareholding with the Ltd company, then they may carry that through to when the shares are 'upgraded' to plc ones. This will certainly only apply to Seedrs investors, not the wider investment community who buy at the point the company goes public.
I've asked Seedrs themselves the question, of course. Yet to receive a reply. But I'm also interested in hearing if anyone else has had a successful punt via their platform.
V8mate said:
I realise how great a successful IPO is and that's why I took a punt on the company I did, as the chances of them achieving it were very high.
My concern is that if Seedrs currently manage my shareholding with the Ltd company, then they may carry that through to when the shares are 'upgraded' to plc ones. This will certainly only apply to Seedrs investors, not the wider investment community who buy at the point the company goes public.
I've asked Seedrs themselves the question, of course. Yet to receive a reply. But I'm also interested in hearing if anyone else has had a successful punt via their platform.
That's my point though.My concern is that if Seedrs currently manage my shareholding with the Ltd company, then they may carry that through to when the shares are 'upgraded' to plc ones. This will certainly only apply to Seedrs investors, not the wider investment community who buy at the point the company goes public.
I've asked Seedrs themselves the question, of course. Yet to receive a reply. But I'm also interested in hearing if anyone else has had a successful punt via their platform.
Other than lock-ups your shareholding should be pari passu with the new holders.
If anything the benefits sometimes swing the other way where founders IPO a lower tier of equity (for example non-voting B-shares, while they hold voting A-shares).
Also you should get an option at IPO to divest, at which point you could take the cash and buy-in to the regular equity. (Although you risk missing any IPO "pop".)
O/T but I Would love to know what makes you think the chances of an IPO were high!!?
If that were the case they wouldn't be looking for funding on Seedrs would they?
V8mate said:
Turns out they do administer your shares post-IPO too.
And take a 7.5% cut of any profit (whether pre- or post-IPO).
That fee is pretty transparent on their site:And take a 7.5% cut of any profit (whether pre- or post-IPO).
https://www.seedrs.com/how_to_invest
https://www.seedrs.com/learn/help/what-fees-does-s...
The shares you hold are exactly the same as regular shares but you effectively have a side-letter agreement about what fee you need to pay Seedrs and when.
So the best thing to do would be to exit the Seedrs position ASAP post-IPO and re-buy in the open market.
walm said:
That fee is pretty transparent on their site:
https://www.seedrs.com/how_to_invest
https://www.seedrs.com/learn/help/what-fees-does-s...
The shares you hold are exactly the same as regular shares but you effectively have a side-letter agreement about what fee you need to pay Seedrs and when.
So the best thing to do would be to exit the Seedrs position ASAP post-IPO and re-buy in the open market.
Good advice, thanks https://www.seedrs.com/how_to_invest
https://www.seedrs.com/learn/help/what-fees-does-s...
The shares you hold are exactly the same as regular shares but you effectively have a side-letter agreement about what fee you need to pay Seedrs and when.
So the best thing to do would be to exit the Seedrs position ASAP post-IPO and re-buy in the open market.
Gassing Station | Finance | Top of Page | What's New | My Stuff