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Crowdfunder Seedrs claims “game changer” with returns

Competition between equity crowdfunding platforms and traditional funds stepped up today as Seedrs, a well-known UK equity crowdfunder, said its annualised return was better than “most other asset classes”.

In its first ‘Portfolio Update’, the 253 deals funded on Seedrs’ platform between its launch in July 2012 and the end of 2015 led to an annualised internal rate of return on a fair-value basis and net of fees of 14.44% and as high as 41.87% when tax-adjusted.

Investors with portfolios of 20 or more investments have outperformed the market with average returns of 15.01% and 43.39% when tax-adjusted, Seedrs said.

The valuations were carried out under International Private Equity Valuation Guidelines.

Roughly 40% of Seedrs’s deals have been for digital businesses, and 20% for non-digital. The remaining 40% have been hybrid digital/non-digital models.

Jeff Lynn, chief executive and co-founder of Seedrs, claimed the data was a “game-changer for us and for the many investors from all over Europe and, soon, the United States who allocate capital through our platform”.

The September issue of Funds Europe reports on crowdfunding and its relevant to traditional fund management.

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