Investors’ Blog – from angel investments to IPOs

Steps we’re taking to improve your investing experience




2 min read

At SyndicateRoom, we’re determined to always present you with the best and most interesting companies to review and invest in.

In aid of this goal, we’ll be moving from a direct shareholding model to a simple nominee structure.

This follows feedback from a number of dynamic businesses, with very strong lead investors, who have said that managing multiple shareholders would distract them from running their business.

Our nominee will not take any of your decisions for you. But because SyndicateRoom investments are managed through a single nominee shareholding, we can take care of administrative burdens on your behalf, and on behalf of the businesses you invest in.

 

What this means for you

You maintain beneficial ownership of your shares and (S)EIS relief, and continue to be as involved with each company as you wish to be – it is only the legal ownership that is held by the nominee.

The SyndicateRoom nominee also allows us to introduce another improvement to the experience. As the nominee will manage the completion and provision of EIS certificates, these will now arrive in a more timely and regular manner.

 

What else is changing?

There will continue to be no upfront or ongoing charges to investors, but for every profitable investment you make, SyndicateRoom will receive a Platform Carry of 2.5% of that profitable exit. If an investment doesn’t yield a positive return, we receive nothing from investors.

We arrived at the figure of 2.5% after speaking with a number of you, and feel that this aligns our interests and incentivises us to source the very best companies, whilst you rightly keep the vast majority of profits you make.

 

When does this start?

The nominee structure and Platform Carry will come into effect with the companies that go live on SyndicateRoom during the week commencing Monday 9th November. The management of your existing investments will not change, and funding rounds that are already live will continue to operate a direct shareholding model.

We’re revising our Terms and Conditions of Membership to reflect the changes to our service we’ve described above as at 9amtoday - Saturday 7th November. We have also taken the opportunity to update them and make them easier to navigate, so look out for these when you next login.

If you have any questions do let us know by leaving a comment below. 


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