the new crowdfund will have the fee attached
FFS
Both Seedrs and CrowdCube are losing money so it’s understandable that both platforms are trying to add extra services and also extra fees. I don’t fundamentally have any issue with them wanting to be viable long term businesses.
I just wish their due diligence on businesses was better than a 5-year old with some crayons.
Actually, I’d love a world where there was no upfront fee (that would be impossible as they need operating cash) but they then took a bigger share of any profit. Right now they are built around volume which is why our own DD is so key as there is so much rubbish out there.
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I am more than fine with crowdcube taking a fee for providing a service, so many people live in a fantasy world where they think companies exist on magical fairy dust.
However I am the one who raised the funds and took the risk with my investment, not crowdcube - they’ve done their bit by providing the service and they have been paid for that with their fee, they are NOT entitled to a cut of my profit.
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If you think about it, disregarding any tax issues etc. If you assume that you would have invested the fee if they hadn’t taken it at the start; CC taking a 5% cut from your investment at the start, or taking a 5% cut of your profits at exit will effectively cost you the same
Would you be willing to pay a much higher upfront %?
Say you have £1000
CC takes 5% at the start so you only have £950 to invest. 10X gives you £9500 at exit
or you invest the whole £100 at the start CC takes 5% at the end you still end up with £9500
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Slightly incorrect as cc will only take 5% of profit so it’s 450.
I wouldn’t mind them taking an slightly higher fee but not 5% as they would effectively increase their income from all investment and not only the profitable ones. The 5% is only a long term return as most company won’t exit for many years to come. But when it does happen they won’t be loss making for sure
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Over the Monzo community they are having the same discussion, apparently the success fee only applies to “businesses that open to investment on or after 1st April 2021”, so I assume neither Freetrade or Monzo future raises are included?
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The next Freetrade campaign would include this carry fee…
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Well at least you can deduct that 5% fee off the 20-45% tax HMRC will charge you for CTG tax over £12k from non EIS investments.
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and another one blow LTD sold to Holland & Barratt. Due to debt ordinary shareholders wouldn’t get anything. The lead investor was Unilever Ventures.
An old article
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I thought the pandemic was a tide lifting all boats for online grocers. Farmdrop still sank. Raised £750k on Crowdcube in 2014. Was meant to do a seedrs round in 2019 but I don’t think anything came of it.
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This one is a real shame. They had some decent backers and a good idea based on a noble objective but demonstrates how hard it is to make this model work.
Hope the suppliers aren’t going to be too burnt before Christmas and hope the administrators come up with a solution that doesn’t put waste to all the perishable stock they must have on hand - especially given the mad levels of poverty in this country.
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UK Building Products ( Gripit ) have been served with a First Gazette on the 30th November for not supplying the company accounts for 2020.
Emailed Nick Beare ( director ) twice for an update but no response. Looks like this company is heading for the scrap head in just over 5 weeks time when it will be struck off.
Anyone heard any news from this company lately?
Nothing since January 2021 where the email did refer to quarterly undates whuch has not happened.
Crowdcube show the company as trading which I guess technically it is. They are not great at updating investors when companies are in difficulties.
Just waiting for the final demise so we can at least claim the EIS loss relief.
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That’s WorkClub sold out to Upflex despite the founder and CEO saying quote “ By August 2021 app downloads and active users were at an all time high. We were managing hundreds of bookings every month, which has continued to grow throughout the year.” So basically Nick his wife and the other Co founder have sorted themselves with nice jobs good wages and sold us investors down the river. I don’t quite get why they would sell out on the cheap when they were finally gaining some momentum.
If it has failed I am surprised that I did not invest!
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UK Building Products ( Gripit ) Striking Off action has been suspended on 08 Jan 2022 - no idea why; just states temporarily suspended asd an objection to the striking off has been received. Does not state who objected or how long temporary will be.
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On Companies house website the only director of UK Building Products ( Gripit ) is Beare, Nicholas David. I wonder if this is the same Nick David Beare of Exodus Ventures Ltd ???!
This chap has not respond to any of my queries over the past couple of years. There has been no communication from the company for over a year now. Really poor and very disappointing!
Could anyone advise if a private company has a legal duty to provide shareholders with an annual update or provide the latest company accounts.
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