My guess is Crowdcube will never make money. It’s a poor and unprofessional cousin of Seedrs (not that they’re great) with a worse business model. It might take a long time for Seedrs to do well, but as an investor, I’d prefer 92.5% of something than 100% of nothing. I’m sure there will be some successes from Crowdcube but the due diligence is so bad that I wouldn’t be surprised if they’re shut down or sued out of existence. I won’t be investing.
That’s interesting as my experience is pretty much the opposite, my extensive Crowdcube investments are looking pretty handsome I’d say (exception for Dirt Factory) while my experience of Seedrs is that a lot of my companies are now looking like lemons.
It would be better if Crowdcube made secondary market, then I wouldn’t mind paying fee for buying or selling shares, or paying a success fee.
Makes sense for them to front load the charge - their business model is based on number of successful raises, not necessarily on the businesses actually doing well. They will make money regardless of the success of the compa y basically which is better for them.
I don’t really mind the charge - it can be heavily outweighed if the company is well valued, and a free investment in an overvalued company y would be worse for your returns really. Agree it’s probably designed to also encourage greater investment value per investor, more efficient admin and greater raises.
They’ll send out exclusive access tomorrow before they go public on Weds. Good timing…because tomorrow is the start of their 1.5% fee.
Pre-money valuation of £73m versus £65m pre-money in 2016. Given that the platform has grown in that time and Crowdcube has been a success it does say something about the previous valuation they put on themselves… I’ve no issue with their current valuation but disappointed that my previous investment hasn’t grown.
I think Emoov may be the death of Crowdcube
I have very mixed thoughts about Crowdcube, personally I think most of the companies listed are not up to scratch (from my experience), those that don’t fail just become zombies (I believe is the word, they don’t actually die as such but just keep ticking along with no updates or growth or anything).
But then we get the occasional diamond amongst it all (For me that is Monzo and Freetrade).
I can’t see myself investing, I’d rather save my money for the next Monzo and Freetrade raises.
I passed on this before and I’ll pass on this again especially now with their 1.5% fee not sitting well with many investors as well as their unchanged valuation after 2 years. I read their explanation as to why they’re doing that but it didn’t really justify my simple mind. For that reason, I’m out.
This is public now and the discussions are pretty gruesome.
Indeed! I wonder if they’ll reconsider.