Partner Article

New Seedrs secondary market to see crowd investors trading shares in startups

Equity crowdfunding investment platform Seedrs is to offer crowd investors the chance to trade shares in their investments after announcing plans for a new secondary market.

The platform, which is due to launch this summer, will give early backers in startups on Seedrs an option to buy and sell shares in their portfolio companies, after the London-headquartered had experienced demand for the option from investors.

Launching in partnership with fund manager Neil Woodford along with Augmentum Capital, and Faber Ventures, the new market is launching with the aim of making crowd investors’ investments more liquid and giving the opportunity for realising early returns on their successful punts.

The platform is due to launch its beta version imminently and has a number of key protections in place to keep the market under control, with trading only being open one week per month and shares only trading at ‘fair value’ which is determined by Seedrs valuation policy.

In quotes reported by City AM, Chief Executive Officer, Jeff Lynn, commented: “Secondary markets are challenging to operate successfully, and we are very conscious of our obligation to provide our investors the best experience we can.

“That is why we are launching this product in beta form initially, so that we can observe behaviour and make improvements as we go.”

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