When a business in which you have invested seeks to raise more money, you will often have pre-emption rights that allow you to invest a pro rata amount in that round based on your current shareholding. Sometimes the company will even be happy for you to invest more than your pro rata allocation. When there is an opportunity to invest in a company’s follow-on round, we will let you know and explain the mechanics. Generally, you will be able to make your investment via Seedrs – even if the rest of the round is being raised elsewhere – but occasionally a bespoke process is required.
Please note that, in some cases, we may need to waive your pre-emption rights, and you will not be able to invest in a follow-on round. This generally happens where the round is significant in size and, due to reasons of confidentiality or other sensitivities among institutional investors, maintaining pre-emption rights would jeopardise the round and the potential success of the company. If we do waive your right to pre-emption, it will only happen when we are satisfied that it is in the best interest of company growth.
You may be interested in reading our blog post on follow-on investing and dilution.