Crowdfunding platform Seedrs is laying off 15% of its European workforce, it has confirmed to Sifted.
As part of the restructuring, the company, which was acquired by US-based investment platform Republic in 2021, will close its offices in Spain and Sweden.
The layoffs, which will affect around 15 people, come after a difficult period for the venture scene, according to a spokesperson at Seedrs.
“The startup fundraising landscape has faced challenging market conditions over the past 18 months. In response to this, Republic has recently restructured parts of its global business, including making the extremely difficult decision to reduce the total number of employees across Republic on a role-by-role basis,” they tell Sifted.
UK-based Seedrs was founded in 2009 and has helped startups such as Revolut to raise early-stage funding.
After the UK competition watchdog blocked Seedrs’ plans to merge with its competitor Crowdcube in 2021, it was acquired by Republic in a $100m deal.
In October 2023, the combined company became the only platform on which a startup could raise in the US, UK and EU simultaneously.
At the time, the company said it planned to focus more on the Nordics, Iberia and the Netherlands.
However, just three months later, the crowdfunding platform has decided to focus on areas of the business that are closer to profitability — and cut down on those that are not, like market expansion, according to a person close to the company. As a result, it will close its offices in Spain and Sweden.
The head of Nordics at Seedrs, Jonas Almeling, who joined the company in January 2023, is one of the people who has been laid off.
“This decision, driven by persistent macroeconomic challenges and the need for a leaner operation, unfortunately includes a reduction in roles, including mine. Even though it’s sad and somewhat disappointing, it’s a decision that I fully support,” he says in a LinkedIn post.
“These operating expense reductions are critical to ensuring that Republic (including Seedrs) is fit and ready to deliver on its long term ambitions, and we expect to see sustainable growth as a result of this course of action,” the Seedrs spokesperson says.
Correction: This article was updated on January 24 to clarify that Seedrs has closed its offices in Spain and the Nordics — but has not withdrawn from those markets. Seedrs will continue to support European companies across the continent.