Equity crowdfunding platform Seedrs scoops £10m

Series A round backed by Neil Woodford's investment trust will help "build on early success" and values company at £30m

Seedrs, the equity crowdfunding platform featured among the top 100 UK start-ups, has announced a £10m Series A funding round backed by Woodford Patient Capital Trust (WPCT); the £800m fund managed by Neil Woodford, and Augmentum Capital; the venture capital ran by Lord Rothschilds’ RIT Capital Partners.

WPCT and Augmentum have invested £7.5m while the additional £2.5m will be made available to current shareholders and new investors through a crowdfunding campaign on its website.

Launched in July 2012 by Growing Business Young Guns Jeff Lynn and Carlos Silva, Seedrs facilitates investment in seed-stage and early-stage businesses and was the first ever crowdfunding platform to receive approval from the Financial Conduct Authority.

It intends to use the round, which values the company at £30m, to expand its marketing “significantly” in the UK and Europe and to drive further growth in America – having recently acquired California-based Junction Investments.

The news follows the business’ recent appointment of Silicon Valley entrepreneurs Dave Morin and Logan Green to its board.

Seedrs’ Lynn commented: “We are absolutely thrilled to have Woodford and Augmentum leading this investment round in Seedrs. The capital we are raising will allow us to deliver our next stage of growth in the UK, Europe and the United States. As importantly, though, is the signal this investment sends to the market.”

Tim Levene, managing partner of Augmentum Capital, will be joining Seedrs’ board of directors as part of the deal. Levene said:

“We have been following the developments in equity crowdfunding for some time and believe Seedrs are the stand out company. The market is still early in its development with many challenges to overcome. However, we believe Seedrs has the right blend of talent, vision, experience and rigour to ensure they become the leader in this exciting space.”

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