While residents of the United States sit on their hands waiting for the SEC to establish rules that will allow individual investors to invest in job producing small businesses, the UK and many in the EU have accepted the changing investment landscape. One of the early leaders in Equity Crowdfunding is Seedrs.com , a site that initially seemed misunderstood. Many of the search results we found regarding Seedrs had news stories claiming that Seedrs and their leadership is involved in some kind of a scam. In our research and review of the Seedrs investment crowdfunding site, we can find no evidence of a scam. Probably the number one point we like to raise regarding equity crowdfunding or any investment is the difference between a scam (fraud) and a failed investment. Small businesses fail as is disclosed on the Seedrs site nearly a million times in a dozen different places. One can not claim that Seedrs is a scam because their investment did not work out. It is up to the investor to research, review and do their due diligence in choosing investments.
Seedrs is the platform for making investing easy and they do a great job of that. The sign-up process could not be easier, even allowing folks in the US and other countries excluded from investing in these ventures to review the documentation provided. For folks in the UK, EU and others investing in these small businesses could not be easier.
With a wide range of deals to invest in, ranging from nearly every industry, we believe that there is a place in nearly every investors portfolio for these types of investments. We say this while urging you to keep in mind that these are very risky investments. This is your “casino” money, the very small portion of your portfolio that you are willing to risk in a risky equity investment for the potential of a large return, somewhere way down the road.
The one item we would like to see more of on Seedrs is the financial data of the companies issuing equity through the platform. The stories are vetted but financials are needed prior to making any investment. It appears that you must email the issuing company and request financial information. We would recommend that a link be created on every issuer page that take a potential investor to the financial information and perhaps a 3rd party review of the data. This will take the strong video and investment story of the Seedrs platform and issuers to the next level.
Everything we have found while reviewing seedrs leads us to be very confident in the operation of the United Kingdom equity crowdfunding platform (which also has an office in Portugal) and we encourage you to check it out.
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