Seedrs has launched a new programme to introduce financial intermediaries and their clients to the crowdfunding space.
The programme sets out to offer a cost-effective, digital alternative to the discretionary EIS funds and offline deals that have historically been the first port of call for wealthy individuals looking for exposure to the early stage equity asset class.
Seedrs reports that it has seen an increasing level of interest from financial intermediaries looking for new opportunities for their clients who want to build their growth investment portfolios, but are conscious of their clients paying excessive management fees.
The crowdfunder said that innovative product features, such as digital tax certificates, real time portfolio performance and a secondary market, as well as recent commercial partnerships with RBS, Fidor bank and The Law Society, has already drawn interest in Seedrs from the intermediary community.
The new programme offers intermediaries a non-advised solution for their sophisticated and HNW clients who are looking to build and manage their own portfolio of S/EIS qualifying investments, with the platform handling all legal and tax admin online with no ongoing management fees.
Investors Manager at Seedrs Adam Reeve said: “Investors and advisers are more conscious than ever about fees eroding portfolio returns, and achieving growth. Self-directed execution-only platforms for traditional asset classes, such as listed equities and bonds, have existed for many years and are a common route for sophisticated investors who wish to construct their own portfolios, without paying significant management fees. Previously there has been little or no equivalent for private equities, particularly seed and venture investing with only structured, managed products provided only to HNW investors. Seedrs offers this service.”
Chief Investment Officer at Seedrs Thomas Davies added: “Equity crowdfunding has become increasingly interesting to accountants, brokers and financial consultants. The Seedrs nominee structure gives advisers the peace of mind that their clients are investing on the same terms as professional VC firms, receiving full voting rights, often pre-emption rights, consent rights and tag along provisions to protect minority shareholder rights. Furthermore, investors can get as involved as they like with businesses, support great ideas as a mentor, beta tester, customer and contribute towards innovation, progress, economic growth and job creation across Europe.”