Fees are only charged to investors once a share is sold and only if that share is sold at profit.
We charge a fee of 7.5% on any profit made (i.e. in excess of the capital invested) on investments held by Seedrs as nominee.
We do not charge any ongoing administration or management fee for acting as nominee. This is sometimes called a 'carry' fee or a 'success' fee.
We do not charge fees for currency conversion, cancelling an investment, withdrawing funds, depositing funds or selling your shares without a profit.
For example; if you buy shares worth £100 and their value doubles to £200 and you decide to sell at that point (if possible), we will charge you £7.50 or 7.5% on your profit of £100 so you will take home £192.50.
Investing in early stage businesses has traditionally been an illiquid asset class meaning opportunities to see are traditionally few and far between. An opporuntity to sell is called an exit event and so called because it provides Investors and Founders an opportunity to 'exit' their investment. These can come in the form of an IPO (moving shares from a private holding to a public market), a buyout/takeover/sale (an offer is made to buy a large number of shares thereby taking control of the company) - or anything similar where something happens to enable you to sell. We normally advise Investors to consider an investment in this class as is one that is held for 7 or 9 years.
With the introduction of the Seedrs Secondary Market (a marketplace where you can sell your share holdings to other investors) we provide investors an opportunity to sell early and not have to wait for one of these 'exit' events. We've had over 4,000 'exits' on the market to date and the vast majority occur through this method today (>99%). it has been hugely successful and is a revolution in the industry. You can find out more about this market in the link above but here again, there are no fees for selling in this market besides the 7.5% on any profit made.
Of the 6 company 'exit events' (not via the Secondary Market) we have experienced (as of August '19 and dating back to 2012) we've had one where were Investors were given the option to transfer their shares into a public market (an IPO). In this case Investors were responsible for paying fees to third-party brokers (which we facilitated) to enable them to be traded in that marketplace. Our current broker fees are set out below:
Chapel Down, FreeAgent & Coinsilium – Canaccord Genuity Wealth Limited: £30 administration charge plus commission of 0.75% on consideration. For sales of consideration over £10,000, there is a £1 PTM levy fee.
In the case of a company exit there may be adminstration fees involved where they are incurred by us such as listing shares in a public market, as in the example above. Typically, as stated, 99% of our Investor exits occur via our own Secondary Market and no extra fees or incurred.
The EIS100 Fund product charges a 2% portfolio fee and that fee is taken from the capital invested at the time of investment.
If an investor chooses to invest directly, he or she will pay a one-time investment fee of 1.5% of the amount invested, subject to a cap of a £250 fee per investment. The investor will pay no ongoing fees or carry to us.