Development of Seedrs and results H1/2021

First, I want to address a little-noticed risk: Seedrs as an investment platform is still a startup itself and is making losses. Thus is Seedrs continues to depend on capital from investors in order to be able to drive its own growth. Should Seedrs fail, managing hundreds of small investments would be a challenge for many investors. However, Seedrs' metrics are doing great and I think that risk is relatively low. Here are the Seedrs half-year results for H1/2021:

  • £4.1MM turnover, +89% growth yoy
  • Shortfall of just £0.5MM, reducing loss by 78% yoy
  • Raised £207MM of startup capital, +64% yoy

After the regulatory authorities prohibited the merger of the Seedrs and Crowdcube platforms at the beginning of 2021, Seedrs reacted quickly and confidently and is driving forward the reduction of its own losses at high speed. Seedrs has also carried out another round of financing via the UK Future Fund: This round gives Seedrs the cash flow to be able to continue operating at the level of the current half-year deficit for many years to come.

In the second quarter in particular, there was real investment hype, with rather high valuations and rounds that were filled extremely quickly. This affected Seedrs and also Crowdcube and corresponded to a euphoria I last experienced in my first years as a crowd investor in 2014/2015.

Philip

I have been investing in startups since 2014. In recent years, my portfolio has grown to over 150 investments of various sizes. On my blog I regularly report about crowd investing and my investments.

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