Star fund manager Neil Woodford has invested £4m of new money into Seedrs, a crowdfunding company.
Star fund manager Neil Woodford has invested £4m of new money into Seedrs, a crowdfunding company.
The investment takes his total stake in Seedrs, which is not listed on any stock market, to £10m.
The investment is held in his £988m Woodford Patient Capital Investment Trust, and Omnis Income and Growth fund, which he also manages.
Mr Woodford’s investment is part of a fresh funding round from the company.
The fund raise values Seedrs at £40m, according to the company, and means Mr Woodford’s funds own 25 per cent of the business.
Mr Woodford has previously explained his rationale for investing in disruptive technology businesses in the area of lending and financial services.
He said banks exited many parts of the consumer and business lending market in the years since the financial crisis, and this has created an opportunity for a new wave of capital providers.
The tennis player Andy Murray is also invested in Seedrs.
The company said its intention is to use the capital raised to develop its products, particularly the development of a secondary market in the investments held on the platform.
Tony Yarrow, director of financial planning firm Wise Investments, in Oxfordshire, is concerned about the growth of investments like this one.
He said alternative investments have attracted a lot of capital in recent years due to very low interest rates.
He is concerned that alternative assets owned for income would fall sharply from favour when interest rates increase.
david.thorpe@ft.com
