Crowdfunding round seven, Wed 24th Nov 2021 🎉

[GMCay]

I just realised it was also you that challenged me and downplayed this when I raised this previously on the thread below:

Community Meetup: Crowdfunding special, Wed 17th Nov 2021, live in London + on Zoom

Hi Geraint. Question for Adam: Can you indicate whether the Crowdcube success fee of 5% will apply to this round? The wording on their website seems ambiguous. Crowdcube’s success fee only applies to profits made on investments in businesses that opened to investment on or after the 1st of April 2021. Will the success fee apply because Freetrade opened to NEW investments after April 2021, or is it grandfathered in because it is a business that opened to investment (through Crowdcube) prior t…

@WBofGreenInvestment

I think you over complicating it. It’s fairly straightforward what it’s saying. For an investment in a business that launched a funding round from 1 April the 5% fee will apply to that specific round and future rounds. Past rounds are irrelevant.

I really don’t think it’s clear at all. The crowdcube fee schedule states the following:

@GMCay

Crowdcube’s success fee only applies to profits made on investments in businesses that opened to investment on or after the 1st of April 2021.

Do you read that as:

1. only applies to profits made on investments in businesses that opened to investment on or after the 1st of April 2021.
2. only applies to profits made on investments in businesses that opened to investment on or after the 1st of April 2021.

Adam is suggesting the later.

The crowdcube email conveniently changes that wording completely:

“The 5% carry will be charged on shares bought after April 2021”