U.K. equity crowdfunding platform Seedrs Ltd. on Wednesday released a report showing double-digit returns for its portfolio.
The Seedrs report examines the performance of 253 deals that have been funded since the platform’s launch in July 2012 through the end of 2015. The annualized performance of all of the deals, net of fees, was 14.4% on a non-tax-adjusted basis, as July 31.
The returns represent share appreciation in notional terms, not actual cash returns. Moreover, there is no secondary market for most of these shares, so in many cases it would not be possible to actually realize these returns. Nevertheless, the Seedrs report aims to show how well these crowdfunded firms are performing on paper.
“The data presented in this report is intended to provide a window into what has been happening so far with the Seedrs portfolio,” the report says. “Looking at where we are today, we view the results so far as very positive: investors have used Seedrs to invest in businesses across a whole range of types and sectors, and at least on paper those businesses have, taken as an overall portfolio, performed very well thus far.”
The report also indicates that businesses with hybrid digital/non-digital models have performed better than firms that are either purely digital, or purely non-digital businesses, on average. As well, firms with both business to business (B2B) and business-to-consumer (B2C) models have outperformed pure B2B and B2C businesses on average.
The three best performing sectors so far have been food & beverage, home & personal and finance & payments, the Seeders report says.
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