Crowdfunding platform joins RBS alternative finance panel

Crowdfunding platform Seedrs has joined forces with Royal Bank of Scotland in a partnership aimed at providing alternative sources of finance.

Seedrs counts Sir Andy Murray among its investors. Picture: Jean Catuffe/Getty Images

The aim of the venture is to help those who are unable to borrow directly from the state-backed group and provides Seedrs, which says it is the most active equity investment platform in the UK, with access to more early-stage, high-growth firms.

Seedrs is the latest addition to the list of alternative finance providers taking part in the Capital Connections scheme, and is the only equity-based firm on board.

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The platform counts Sir Andy Murray among its investors and has funded successful early-stage businesses such as Edinburgh-based accounting software firm FreeAgent, which floated on London’s Alternative Investment Market in November.

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RBS launched the Capital Connections scheme in 2015 after signing up Assetz Capital and Funding Circle to its pilot. Last year it added Iwoca, RBS Social & Community Capital and Together to the panel.

Seedrs said Capital Connections offers RBS business and commercial customers introductions to these alternative funding services, with no commission paid.

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Alison Rose, chief executive of commercial and private banking at RBS, said conventional funding routes “are not always the best option for hyper-growth start-ups. As the biggest supporter of commercial business in Scotland we are committed to improving the support we can offer”.

Jeff Lynn, chief executive and co-founder of Seedrs, said the partnership gives the platform “a great opportunity to facilitate investment into more ambitious early-stage businesses”.

He added: “As the most active equity investor in UK private companies, Seedrs has already funded over 500 investment rounds for fast-growth SMEs, with more than £210 million invested into campaigns on our platform to date. We look forward to working with many more entrepreneurs with exciting growth-focused businesses across the UK to deliver the funding they need from seed to Series A and beyond.

“It is encouraging to see a high-street bank embracing fintech and recognising the importance of alternative finance for funding the UK’s start-up ecosystem.”

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