In a rare meeting of the public and private markets, crowdfunding platform Seedrs says private investors have responded enthusiastically to the opportunity to invest in fintech venture firm Augmentum, surpassing the initial £500,000 target that Seedrs set for its portion of the IPO in the first 24 hours.
Representing the first Main Market IPO that Seedrs investors have had access to, Augmentum Capital is trying to raise £100 million for a new fund investing in early-stage fintech companies in the UK and wider Europe.
The new company will acquire Augmentum's existing investments in a portfolio of five fintech firms, including Seedrs itself, as well as in Zopa, Interactive Investor, BullionVault and SRL Global.
RIT, an investment trust backed by Lord Rothschild is expected to contribute £10 million to the fund, with the management team providing £2 million in capital.
Jeff Kelisky, chief executive officer at Seedrs, says the company's connection to Augmentum provided an irresistible opportunity to offer its subscribers a first taste of a Main Market IPO.
"Although Seedrs has the capacity and is regulated to facilitate public market investments, we have generally chosen to focus on our core offering to seed through to pre-IPO private businesses," he says. "Seedrs continues to lead industry advancements in the equity crowdfunding space and is excited to make this opportunity available for those who may not have had it elsewhere.”