Seedrs: Fewer deals and lower investment hits revenue at crowdfunding platform ahead of Republic Europe name change
Seedrs suffered a 10 per cent cut in its revenue after fewer deals and less investment were made through its crowdfunding platform in 2023.
The business has reported a revenue of £6.1m for the 12 months, down from the £6.8m it posted in 2022.
The London-headquartered company provides an online platform for investing in early stage and growth businesses across Europe.
Its revenue is generated from fees paid by businesses that raise investment through its platform. It also earns money from investor transaction fees and realised fees on investment returns distributed to investors.
Seedrs was acquired by US-based equity crowdfunding platform Republic in 2021 in a $100m (£76.6m) deal.
In July, Seedrs announced it would start trading under a new name – Republic Europe.
Seedrs ‘confident’ it will remain a market leader after rebrand to Republic Europe
According to newly-filed accounts with Companies House, Seedrs saw its pre-tax loss widen from £9.6m to £9.9m in 2023.
A statement signed off by the board said: “Online investment in alternative asset classes is growing as an industry in the long-term and continues to receive attention and support from the media, public and government.
“Whilst there is competition, the group is confident that its commitment to developing a strong brand, state-of-the-art infrastructure and product development through research and development, and extensive customer base and a quality service, will mean it remains a market leader.”
Seedrs said the fall in its revenue was driven by a combination of lower deal and investment volumes which resulted in a decrease in investor revenues.
The takeover of Seedrs came the year after the business had planned to merge with rival Crowdcube.
However, the deal fell through after the Competition and Markets Authority (CMA) raised concerns.