Hey guys might be a silly question but if you invest in freetrade via crowdfunding what exactly do you get in return?? Or is it basically you just give money to help them grow but personally get nothing back in return??
You get equity in the business.
Alongside your shares, you’ll receive:
You get shares in the business. FT’s is still a private co so it’s not listed on any stock market and these crowdfunding rounds are the only way to invest in it. The hope is that one day FT exits either by being bought by another co or by IPOing. It’s obv a startup so much higher risk than buying a blue chip on the LSE.
I’ve had one crowdfunded company exit so far. I put £500 in, they sold to a bigger company and I got £1575 back.
I think they sold out too early and I’m hoping to do even better with Freetrade, I’d prefer to see an IPO over selling to a bigger company
How did it work with them being bought by a bigger company? Was it all through crowdcube?
I don’t think crowdcube had anything to do with it. if I remember correctly they sent me a form to fill in to give them power of attorney to sell my shares on my behalf
I don’t know what would have happened if I hadn’t signed the form, but I guess there would have been a danger of getting stuck with shares I could never sell
If the company’s articles had “drag along” rights you might’ve just got a letter saying “you sold your shares, here’s a cheque”
How does one go about claiming these “rewards”. Will there be some post about that?
You will be sent a form to claim a few weeks after the investment has been made, a truly painless process in my experience
which company was that?
I know Seedrs have a secondary market, but if later down the line I wanted to sell my shares of Freetrade from Crowdcube, is there a way to do that?
B shares can be traded if you can find a buyer yourself. It would need freetrade (and crowdcube I think) to manually make the ammendment to the name of the holding and lists at companies House I believe but it can be done. Crowdcube don’t have a market for this unfortunately so it’s more manual and down to the individual to find their own buyer.
There may be a requirement for the transferor to sell all holdings from a particular round. This is how crowdcube deal with Monzo shares anyway.
So if X has 100 shares from R3 they can only sell that segment as a whole.
CC will also need to agree to any transfer and there must be a valid reason. Once agreed as @Wulfy says it will need to be agreed by the team at FT.