Seedrs To Launch UK's First Equity Crowdfunding Secondary Market

[john williams]

Seedrs is to be the UK’s first equity crowdfunding platform to offer secondary trading in the shares of businesses raising money on its website, the founders of the company announced today. If successful, the move could overcome the biggest fear of many investors considering crowdfunding – that they’ll be locked into their holdings.
“The potential opportunities that a secondary market brings for buyers, sellers and entrepreneurs alike makes this development incredibly exciting. Perhaps most importantly, we believe this will help businesses who are raising capital through Seedrs: with the prospect of secondary sales now available, we expect more investors are likely to want to back the great businesses we work with.”
What is your opinion on this news!?

[Molly]

Think this could be fiercely contested - not sure i's been approached in exactly the right way just yet, perhaps a call for a third party to step in and take control of the market rather than individual platforms setting their 'fair value' price on the market - even if verified. I read an interesting take on it via OFF3R yesterday - https://learn.off3r.com/equity-crowd...y-market-race/

[Cavender]

There definitely will be a need for it but there is no detailed legal framework so far in the US for this type of market. Regulation Crowdfunding is still forming, it has been only 1 year since it is in force and there is still a lot to fix.

In general, equity investments under Reg CF can’t be resold for 1 year and there are a number of investment models forming under the law: equity (notes, SAFE’s), debt, revenue sharing.