SEIS and EIS Investments

I wanted to see if there was any particular interest here in adding SEIS and EIS investment opportunities to Freetrade?

I know these are private company investment schemes, but considering the growth of Seedrs and Crowdcube who offer this kind of option, I think Freetrade could really benefit.

For those that don’t know - these are schemes backed by the UK government which give chunky tax breaks on the investment.

although i’m all for crowdfunding on freetrade, any discussion on this platform wouldn’t represent everyone that will be on freetrade in the future as the majority of this community have invested.

how do you picture it?
separate to stocks on the platform?
it would require a fair bit of admin aswell

Yes, I think exactly how it is now. A list of (private) stocks are available and rather than the ‘US/UK’ filter we have an ‘SEIS/EIS’ filter which can then be a subset of the UK listings.

From my experience a lot of the admin is actually on the company’s end, they know if they’re eligible and to what level, they can apply to Freetrade, and when their SEIS/EIS limit is filled, they are removed from the listing.

I think it would benefit both the investors of Freetrade as we could diversify our profolios across public and private assets, and aspiring businesses who don’t want to pay the high fees for the usual crowd funding platforms.

sounds great
maybe after FT’s settled in europe
but i do hope it happens, FT would be a great place for crowdfunding.

I wonder if there would be regulatory constraints preventing such a scenario

1 Like

Really like this idea - they could start with their own shares if they do another round in 2020!

There has been some previous discussion of similar ideas including a secondary market for unlisted shares, which included a great in-depth post from Calum (not sure if he is still with freetrade, but the points should still apply). It does sound sadly like it would be a lot of work/risk, so perhaps something for the long term, and maybe the initial crowdfunding would be doable

1 Like

A secondary market would be really great!

There are so many companies that have been on Crowdcube that i’ve missed out on, as well as a few shares that I’d like to exit.

I too would love to see this - unfortunately it sounds like it is even more work than offering crowdfunding - basically setting up an exchange. It’s telling that the crowdfunders have not tried to expand into this obvious income stream.

I wonder if compared to a secondary market, helping companies with crowdfunding and managing shareholdings would be doable though. Existing crowdfunding companies are not very impressive.

It does sound complicated. However, Seedrs have a secondary market and Crowdcube trialled one. I do wonder what made Crowdcube give up on it though.

For :freetrade: the way they should do this is via integration with Seedrs and Crowdcube. One would be able to buy from their :freetrade: account directly on the others’ primary and secondary platforms.

I didn’t know that Crowdcube had trialed one. Have they implemented a secondary market then?