Tag Archives: Crowdfunding

Seedrs Welcomes Domaine Chanzy as First IPO Campaign

Domaine Chanzy Seedrs

Today sees the launch on Seedrs of a campaign for Domaine Chanzy SA, a leading Burgundy winemaker. What makes this campaign exceptional is that it is part of Domaine Chanzy’s IPO on the London Stock Exchange’s Alternative Investment Market (AIM). The ticker symbol will be “WINE”.

Last September, Seedrs broke ground by hosting the first-ever equity crowdfunding campaign for a quoted company, Chapel Down. That campaign was huge success, raising £3.95 million through its crowdfunding and placing components.

At the time, our Chief Investment Officer, Tom Davies, said on Bloomberg that he thought it was only a matter of time before we started seeing IPOs raised through Seedrs. Even he didn’t realise that it would happen so soon.

Domaine Chanzy is looking to raise a minimum of £1.9 million to fulfil the ever-increasing demand for its award-winning wines and satisfy its working capital requirements. Upon admission, the winemaker will be the only French company listed on AIM. In parallel with crowdfunding campaign, Domaine Chanzy is raising funds through a placing led by several City corporate finance firms.

The Domaine Chanzy campaign is a significant step forward for equity crowdfunding in Europe and opens up the opportunity to participate in IPOs to a much wider range of investors. Here are a few reasons why we think it’s so interesting:

  • Investors large and small will be able to invest as much or as little as they like, from £10 up.
  • In addition to the shares they purchase, investors will be offered substantial discounts on Domaine Chanzy wines. Those who purchase a minimum of 1,000 shares (£1,200) will be entitled to discounts of up to 55% on wines ranging from Domaine Chanzy’s entry-level offerings to its premier Grand Cru.
  • The shares will qualify for Enterprise Investment Scheme (EIS) relief.
  • Investors who invest through Seedrs will be represented by us as nominee. This means that they will not need to establish separate brokerage or trading accounts. Investors will be free to sell their shares on AIM at any time (provided that sufficient demand exists).

We are proud that a company with a regional wine making heritage that goes back almost 250 years chose Seedrs to raise funds in an innovative way. It’s a great opportunity for the company to raise investment from a larger, more diverse, base of investors, enhance its profile among UK and other potential consumers in Europe and an appealing way to build long-term brand engagement among a wide base of investors.

Our vision has always been to provide a platform for people to invest in the businesses they believe in. Being a part of the AIM float for Domaine Chanzy further showcases our dedication to innovating fundraising and democratising investment.

To see Domaine Chanzy’s campaign, please visit: https://www.seedrs.com/chanzy.

Holiday survival guide from Seedrs

Still looking for the perfect last-minute gift for your loved-ones this holiday season? You’re in luck! We’ve compiled a list of offers, last-minute gift ideas and shopping tips for the savviest of gift-givers, from some of the most indulgent and interesting Seedrs-funded businesses.

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Why equity crowdfunding a listed company is kind of a big deal

Public Company Crowdfunding

Equity crowdfunding is evolving quickly. Naturally, equity crowdfunding fills the funding gap that exists for many early-stage businesses that are too risky for banks, too early for angels and too small for venture capitalists. But now, later-stage companies are catching on to the power of professionally managed crowdfunding platforms (like Seedrs). What we are starting to realise is that equity crowdfunding works really well for certain types of business, regardless of what stage they are at.

This month, publicly-listed, award winning English winemaker and craft brewer Chapel Down (listed on ISDX) launched a £1.6M crowdfunding campaign on Seedrs. In less than three weeks, they overfunded to almost £4M, from around 1,400 investors – which makes this the largest equity crowdfunding campaign ever. This was the first time a public company – anywhere in the world – campaigned for investment via equity crowdfunding. This is an excitingly innovative approach to raising growth capital, especially when most companies at their stage, with their positive financial traction, traditionally reach out to institutions and large individual investors in The City. This is part of the continuing evolution in crowdfunding.

So, why does campaigning on Seedrs make so much sense for larger, listed companies?:

Companies need investment to grow
Regardless of stage, businesses often need capital investment for growth. Publicly listed companies are no different and look to raise money from institutions and retail investors alike. But when they do this the company is not actually raising money through the exchange. Instead, the brokers and placers are the distribution channels through which the institutional and retail investors are accessed. Seedrs, in the case of Chapel Down, is a new type of distribution channel through which Chapel Down as a publicly listed company can access retail investors who might not otherwise have been able to be reached.

Raising investment takes time
When raising investment traditionally through brokers, it can be immensely time consuming and inefficient. Roadshows, sales calls, meetings, emails – it can be draining on the resources of a company. Seedrs provides a very quick, efficient and online process for the publicly listed company to reach out to these investors, and for these investors to quickly and easily subscribe for publicly listed shares.

It’s more than just funding
Inviting customers to invest in your business is a great way to build long-term brand engagement and resonance among people who are already bought in on a transactional level. By inviting them the chance to invest and be a part of your future, you’re inviting them to have a deeper, longer-term relationship with your business. Because these customer-investors will be literally bought into the business, they’ll have a vested interest in helping with user research and feedback, buy your brand instead of competitors, becoming brand evangelists, and keeping in touch.

Combine online and offline investors
Quoted companies likely have previous investors who will have pre-emption rights and may want to follow on their investment. Or, they could have interest among outside institutions. Bringing these offline investors online (through a placing or new share offer), along with a crowd of customers and potential customers, is dramatically more efficient. All investors, regardless of size, can be offered the same transparent terms and same (ordinary) shares; shareholder documentation is standardised; and the ongoing relationship between the business and its investors is more effectively managed through a post-investment investor relations web portal.

Offer more than investment
Many UK businesses may qualify to offer advantageous tax reliefs to investors, including EIS, that wouldn’t be applicable for shares purchased on an exchange. Investors need to hold shares for a minimum period of time to qualify for the reliefs (three years in the case of EIS), but many investors find the tax reliefs highly appealing for longer-term investments and prefer to have access to investments that qualify. Crowdfunding through a platform also makes it possible to offer investors additional perks like free samples, invitations to AGMs, early-access to future products, tours and more. These additional rewards aren’t easy to manage on an exchange.

Business crowdfunding has evolved from raising equity for startups, to crowdfunded funds, to crowd equity convertibles and now crowdinvesting in publicly-listed companies. Our internal legal team and professional processes mean we can continue to offer new, exciting ways for people to invest in businesses of all stages, sizes and types.