Part of the Seedrs platform is the UK’s only full-function private equity secondary market. The Seedrs Secondary Market has been enhanced significantly and grown quickly since its launch in 2017, and in May 2020 surpassed £1M of shares traded in a month for the first time.
As investor appetite to buy and sell shares in unlisted companies grows, Seedrs has entered a partnership with Capdesk in order to extend the breadth of private companies invited to trade shares on the Seedrs Secondary Market. Now, companies outside the Seedrs portfolio who use Capdesk for their cap table and equity management systems will be able to access the Seedrs Secondary Market.
“Our vision is to be the largest marketplace for private equity investment and to be an essential part of the investment lifecycle. Our secondary market delivers liquidity to a previously highly illiquid asset class and is already seeing great success as our May window shows. But, to make real change to private equity, we knew we needed to open up and integrate with other innovative fintech players. We welcome Capdesk to the fold and invite others to join them as we build out the ecosystem that serves businesses and makes trading for investors as easy, as trusted, and eventually as fast as a public market.” – Jeff Kelisky, CEO at Seedrs
With companies increasingly delaying an IPO exit, especially in these uncertain times, the ability to buy and sell private shares delivers liquidity to a historically illiquid asset. It also gives employees and early investors an avenue to cash out before an exit event, while encouraging new investors to opt-in.
The Seedrs and Capdesk partnership is a pioneering offering in its level of automation and digitisation. From today, Capdesk-listed businesses in need of funds can directly list their shares on the Seedrs secondary market, while early investors or employees with vested options now have the choice to cash out early.
“Over the last millennium, the amount of IPOs have declined while the amount of employee share plans and venture funding has increased. This has been the paradox Capdesk was set up to solve. Capdesk helps +1,000 companies and +100,000 employees and investors manage their equity. With Capdesk technology and Seedrs network we are creating the first private secondary market for shareholders and employees in Europe. This is going to be huge.” – Christian Gabriel, Co-Founder and CEO at Capdesk
The Seedrs Secondary Market has gathered pace in the last few years, as investors’ interest in exciting and innovative startups outside of funding rounds has grown. As a result, May 2020 was a milestone month for the Seedrs Secondary Market, with Revolut share sales topping the list for the most amount of shares listed and sold. To date, the Seedrs Secondary Market has enabled over £5.2M traded in secondary transactions in more than 400 companies.