Crowdfunding platform Seedrs has launched as secondary market, which will enable startups to hold off on going public a little longer. However, it’s not alone in doing so.
The UK-based venture said that the new offering will enable private businesses, employees and investors to capitalise on the enterprise without having to wait for an initial public offering, TechCrunch reported.
Of course, Seedrs already had a secondary shares marketplace on its platform, but that was only open for businesses already working with the crowdfunding company.
Investors will now be able to list their shares directly on the secondary market and sell to the Seedrs investor network.
Jeff Kelisky, CEO at Seedrs, told TechCrunch that Seedrs adds 30 new companies to the Secondary Market every month.
“Access to secondary liquidity is increasingly critical in the private company investment ecosystem, especially in the current climate, where we are seeing businesses staying private for longer,” he said.
“As we build out our full-scale marketplace for private equity investment, we see secondaries in private businesses as an essential and expected ingredient in the investment journey.”
Neverthless, Seedrs is not the only crowdfunding platform to open up its platform with a new secondary market.
In August, FinTech Global reported that rival Crowdcube had launched a new product called the Direct Community Offer (DCO).
Similar to Seedrs’ offering, Crowdcube’s DCO was aimed at enabling later-stage startups to raise liquidity for early investors without going public.
The aim, Crowdcube’s CEO and founder Darren Westlake said, was to give early investors, employees and business leaders a chance to cash in on their investments into early-stage European startups without having to wait for an IPO.
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