Secondary Market – 2020 12 months in assessment

2020 was a giant yr for the market with secondary transactions exceeding £1m in a single month for the primary time, and the market rely topping £5m in transactions throughout 14,000 share heaps in companies spanning the overwhelming majority of our portfolio. 

All of the whereas not one single enterprise has needed to carry a finger while their buyers proceed to interact of their narrative, purchase and promote their investments seamlessly on-line and have fun their success. We see sturdy proof of the secondary market offering a compelling engagement mechanism for companies in between major rounds such that when it comes time to boost once more (of which greater than 30% of our portfolio does) there’s an energetic engaged investor group to attract on; a improbable extra profit for companies elevating with Seedrs and profiting from our superior nominee construction.

Purchaser and vendor charge

In April, we launched a purchaser and vendor charge which was adopted in Might with Revolut changing into eligible for the primary time after their spectacular £5B valuation. This noticed numerous Seedrs buyers (and some cheeky Crowdcube buyers unsuccessfully making an attempt to switch their shares over to us) seeking to take revenue and promote to… themselves! Revolut has restricted gross sales to current buyers solely which makes these volumes all of the extra spectacular. So while Revolut accounted for a big proportion of complete gross sales in Might, transactions have decreased steadily the place in December’s market they account for lower than 30% of all gross sales. We invite Revolut to launch this restriction, open up their investor listing to those who missed out the primary time and make their current Seedrs buyers even happier!

Variable pricing

In August, we launched the primary model of variable pricing with the power to listing shares on the market at +/- 30% and in December we eliminated all restrictions which resulted in 10% extra companies being transacted per market and extra sellers realising extra of their earnings. In December’s market our sellers made a median revenue of £392 every, an enormous 260% uptick verus January of this yr the place sellers made a median revenue of £150. This can be a improbable validation of the market and a terrific profit for Seedrs buyers, and while there’s extra work to be finished, we’re delighted that returns proceed to develop for these buyers that make investments into companies by way of Seedrs.

We have now massive plans

Subsequent yr goes to be massive. We’re clearly nonetheless in Beta part with this product, and there stay a variety of alternatives; the power to purchase partial share heaps; having the ability to purchase at any time of the month; worth alerts; featured secondary companies and… actually, the backlog of concepts we have now for this product goes on and on and on! It’s simply one of many Fintech Universive’s best-kept secrets and techniques and we have now each intention of doubling down on it in 2021. See you there!

Secondaries

2020 was additionally the yr we opened secondaries to all personal companies and their buyers permitting any enterprise with direct shareholders (topic to approval after all) to run a marketing campaign and promote to Seedrs buyers underneath our nominee. We generated a improbable quantity of curiosity on this proposition, partnered with Capdesk and launched our first Secondary Marketing campaign with Safetonet. 

Behind the shiny facade this was a posh authorized and business integration of two platforms to ship a scalable secondaries resolution not just for Safetonet however all subsequent offers. You noticed it first right here and you will notice extra early subsequent yr as we broaden the supply to incorporate the cashless sale of worker choices in much more mature and thrilling companies – watch this house for bulletins. 

A raft of latest shareholder propositions have been launched this yr together with: the power for Direct buyers to switch into our nominee and; for Direct buyers to listing immediately into our market – once more you will notice extra of those subsequent yr as we broaden {our capability} to serve this want.