The Financial Conduct Authority (FCA) has advised micro-investment platform Odin to stop accepting new clients and to stop new and partially funded live deals.
In a public statement, Odin mentioned that syndicating transactions on a software platform such as this requires specific regulatory approval, which the company does not have. The FCA advised the company to seek approval for the investment arrangements. With this approval, Odin would be able to arrange investments that involve matching cheques from both retail and business clients.
Founded in April 2023, Odin brings together retail investors looking to back startups and VCs into a single entity while optimizing the cap table and LP base. The platform allows retail and professional investors to back companies and investment firms with as little as $1,000.
Odin’s response to the FCA’s decision
In addition, in a separate statement emailed to clients, Odin emphasized that the company provides management software and services to high-net-worth angel investors, venture capitalists and founders who often conduct these deals through lawyers and email with or without the company’s help.
