One of Seedrs 2016 successes will be able to return investors a 3-4 times uplift on their money. Now that's what ECF should be about.
Blow Ltd raised £1.3m on Seedrs 14 months ago. Now the company has a large retail chain investing £6m. As part of the deal, it is also offering to buy back around £1.5m of the existing Seedrs SH shares. This offer is being made at a company valuation of around 3.5 times the valuation in June 2016. So for a Seedrs SH, a great and swift return. What's more, this is not part of some drag along clause as so often seems to be the case - it is merely an option, to be delivered on a pro rata basis.
It seems likely that most SH will take the opportunity to off load at least some of their holding, so demand will be strong. The £1.5m set aside will not allow all investors to cut and run at the new valuation, so you could argue this is an option and a mere gesture. But in the current climate we would like to applaud all involved for bothering.
Hats off.
