As for the start of his keynote, Jeff recalled his weekend in Budapest, back in 2011, when Seedrs was awaiting approval from the UK Financial Conduct Authority (FCA). He arrived there with his wife intending to relax, but soon after received a call that their application for authorization had been declined. So, instead of a purely relaxing weekend, they experienced a somewhat surreal visit. “But we did, I think, what any sensible person would do in those circumstances. We ate goulash, drank Tokaji, visited the baths, went to the opera, and distracted ourselves as best we could. We did have a very enjoyable time and remain grateful to Budapest for providing that distraction. Eventually, when we returned to the UK, I involved lawyers, engaged some politicians, pulled a few strings, and ultimately, we were authorized. But anyway, that’s my brief account of Budapest,” Jeff reminisced.

The rest, as we know, is history.

Listen to Jeff’s keynote here! https://www.youtube.com/watch?v=Clo3nD2VuwQ

(recording starts at 2:30, from then on the quality is much better)

In the keynote, Jeff highlights the importance of Seedrs in the crowdfunding space and its role in facilitating investments in private companies and discusses the evolution of the UK’s entrepreneurial ecosystem over the past decade and the journey of Seedrs.

Starting in 2009, Seedrs was conceived as a marketplace connecting entrepreneurs seeking capital with a diverse range of investors and to enhance the development of a transparent fundraising process, to replace the then-current ’opaque, offline transaction methods. After the first decade of successful operation, despite challenges like a failed merger with the other large platform Crowdcude, the platform has successfully funded over 2,000 deals, deploying billions of pounds.

Recently acquired by Republic, a US-based global investment firm, Seedrs has expanded its offerings beyond equity to include various asset classes.

A few weeks ago achieved a significant milestone by gaining authorization in Ireland under new European crowdfunding regulations ECSPR, which enables expansion across Europe.

In 2009, when Seedrs was starting, the UK’s tech startup scene was in its infancy, with skepticism about the potential for significant tech startups outside of the U.S. The global financial crisis of 2007-2009 played a pivotal role in this transformation. It lowered opportunity costs, prompting many to leave traditional corporate jobs to start innovative businesses. This shift contributed significantly to the growth and dynamism of the UK’s entrepreneurial ecosystem, demonstrating how financial disruption can foster innovation and the development of successful business environments. The UK’s startup ecosystem over the past 10-15 years, Jeff notes that the UK, within the broader European context, is now seen as a robust startup and scale-up ecosystem, leading in terms of capital deployed, number of businesses funded, and unicorns.

Jeff Lynn attributes the growth of the UK’s startup ecosystem to a favourable, agile political environment and regulatory openness since 2008. The UK governments played a key role in promoting the ecosystem, boosting its global reputation. This, combined with adventurous capital providers, helped establish a thriving environment for startups, leading to the emergence of numerous unicorn companies by 2014-2015. However, Jeff also expresses caution, acknowledging challenges such as overvaluation of businesses before the 2022 market downturn and the potential impacts of Brexit. Despite these concerns, he remains optimistic about the UK’s ecosystem, enthusiastic about the future, particularly Seedrs’ expansion into Europe, and sees potential for more robust startup ecosystems across the continent, including Central and Eastern Europe. ű

Jeff Lynn responds to questions about the key factors for a successful crowdfunding platform and the benefits of Seedrs’ acquisition by Republic. He emphasizes that having the right deal flow is crucial for a crowdfunding platform. While building a strong investor base is important, the quality and variety of deals are what truly attract investors. He shares an anecdote illustrating the importance of offering diverse investment opportunities, noting that different investors are drawn to different types of deals.

Regarding the acquisition by Republic, Lynn highlights several benefits. Firstly, being part of a larger, well-funded group relieves Seedrs from the constant fundraising cycle necessary for a high fixed-cost business model. This integration provides financial stability and allows for more strategic focus. Secondly, the global reach offered by Republic enhances Seedrs’ ability to facilitate cross-border investments, expanding opportunities for both businesses and investors. Finally, Lynn discusses the advantage of diversifying asset classes. While starting with a focus on a single vertical is beneficial for brand establishment, he advocates for the ‘all-in-one marketplace’ concept. This approach includes exploring opportunities in different asset classes like equity, debt, and even cryptocurrency. He sees this diversity as a key strength of being part of Republic’s broader vision.

Jeff kindly offered the viewers to ask questions from him, as he consciously chose not to share a presentation. In such a case, submit it at to ecosystem@tokeportal.com 🙂

 

Our latest posts about Seedrs and Jeff Lynn:

https://tokeblog.hu/en/jeff-lynn-podcast/

https://tokeblog.hu/elet-az-ipo-elott/

https://tokeblog.hu/en/breaking-news-in-the-development-of-the-crowdfunding-market/