Crowdfunding platform Seedrs has announced its first portfolio update and the news is broadly positive. There were 253 deals facilitated on the Seedrs platform between its launch in July 2012 and the end of 2015 and analysis reveals that the investments produced
For investors with portfolios of 20 or more, Seedrs says investments have outperformed the market on average, with average IRRs of 15.01%. That is further boosted when the figures are adjusted to take account of the UK tax treatment of crowdfunding investments, with the return reaching 43.39%.
A breakdown of the deals shows that around 40% of investments involved digital businesses, with 20% involving non- digital. The remaining deals centred around hybrids of both. Meanwhile, nearly 60% of its deals have been for B2C businesses, with 30% for B2B ones and the remaining 10% for businesses with both B2C and B2B models.
A sector breakdown reveals that the three best performing sectors to date have been Food & Beverage, with a 22.77% non-tax-adjusted IRR (tax-adjusted: 49.73%); Home & Personal, with a 17.79% non-tax-adjusted IRR (tax-adjusted: 57.76%); and Finance & Payments, with a 16.91% non-tax-adjusted IRR (tax-adjusted: 43.20%).
‘Achievements beyond nearly every other asset class’
Jeff Lynn, CEO and Co-founder of Seedrs said, “The release of this portfolio ppdate is momentous for Seedrs. I co-founded the business in 2009 because I am a strong believer that a portfolio of early-stage investments can produce great returns for investors large and small. Now, for the first time, we have the data to prove it. The Seedrs portfolio has achieved an IRR in excess of nearly every other asset class, and that’s even without taking into account the impact of tax reliefs.
“As importantly, our active investors have shown that, on average, they can beat the market, using Seedrs to build portfolios of outperformers. It is difficult to overstate the importance of this data: it is 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.”