Tuesday, 8 August 2017

Some genuine good news for Equity Crowdfunding


One of Seedrs 2016 successes will be able to return investors a 3-4 times uplift on their money. Now that's what ECF should be about.


Blow Ltd raised £1.3m on Seedrs 14 months ago. Now the company has a large retail chain investing £6m. As part of the deal, it is also offering to buy back around £1.5m of the existing Seedrs SH shares. This offer is being made at a company valuation of around 3.5 times the valuation in June 2016. So for a Seedrs SH, a great and swift return. What's more, this is not part of some drag along clause as so often seems to be the case  - it is merely an option, to be delivered on a pro rata basis.

It seems likely that most SH will take the opportunity to off load at least some of their holding, so demand will be strong. The £1.5m set aside will not allow all investors to cut and run at the new valuation, so you could argue this is an option and a mere gesture. But in the current climate we would like to applaud all involved for bothering.

Hats off.

2 comments:

  1. WP: Didn't they raise on CC too? Is this the blow dry bars?

    ReplyDelete
  2. Dont think so but yes its is the blow dry bars

    ReplyDelete