Star fund manager Neil Woodford invests in Seedrs

LLB Reporter

Here’s why

Seedrs, the UK’s most active equity crowdfunding platform, has announced a £4 million investment by Woodford Investment Management (Woodford). The investment will be made through two Woodford-managed funds, Woodford Patient Capital Trust plc (WPCT) and Omnis Income and Growth Fund (Omnis).

This investment follows on a £6 million investment in Seedrs made by Woodford in 2015. In addition to the investment from Woodford, Seedrs will conduct a crowdfunding campaign to give existing shareholders and new investors the opportunity to participate. Details of the crowdfunding campaign will be announced shortly.

The fundraising round values Seedrs at £40 million on a fully-diluted, pre-money basis. This represents a 27.2 per cent increase in share price from Seedrs’s last fundraising in mid-2015 and a 135.9 per cent increase in share price from its late 2013 funding round.

Seedrs will use the capital raised in this fundraising round to launch new product capabilities that will materially increase liquidity and return potential for investors and businesses; build out increased sales and marketing efforts, launch a select set of strategic partnerships, and massively scale campaign execution through automation, machine learning and AI.

Speaking about the round, Jeff Kelisky, Chief Executive Officer of Seedrs, said: “We are thrilled to have Woodford leading the round with £4 million, taking their total investment into Seedrs to £10 million. The capital we are raising will allow us to deliver our next stage of growth. Equally important to everyone at Seedrs was gaining agreement that we could open up an amount for the crowd. We already have nearly 1000 crowd investors following raises in 2013 and 2015 and many investors were disappointed to miss out on our last round.”

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