Dozens App


(Adam) #144

Personal view: beware of anyone telling you that they have financial engineered a new security that pays 5% interest with no risk.

Reminds me a bit of the CFD and spread betting crowd claiming their products as being the same as share ownership.

Essentially, they are going to pay you 5% interest out of their own pocket as a marketing / client acquisition cost. Presumably financed by crowdfunding investors as they are not lending out or investing the funds to earn a higher interest rate.

I don’t think this is being presented transparently, rather, it is being presented as an introduction to investing and bonds more generally.

I don’t think it’s good for new investors to think there is a way to earn 5% interest on a bond with no risk.


#145

I respect your view but this part isn’t accurate. Dozens Savings is prefunded by VC money.


Their Terms & Conditions are worth a read, but the layman never really bothers tbf.


(Adam) #146

That’s just the first issue, presumably it is not the last.

The Seedrs page says the existing funding is a convertible note with an interest rate of 10%.


#147

Is it the interest rate or the dilutive element that would be an issue? Here’s what AC says on it…

Personally, 10% of $3m dollars per year didn’t strike me as affordable when I first evaluated this and I’m assuming it will be converted as soon as the next raise if not before.


(Adam) #148

By “issue” I meant “bond issue”.

A convertible note is completely normal way of raising early financing, the most famous example perhaps being the note Peter Thiel gave to Facebook. As with that example though, there can be some relatively complex terms included.

On your question about dilution, I’d expect that the valuation and corresponding per share price of the round is calculated on a fully-diluted basis (ie assuming the note converts and any employee stock options are exercised). I know that’s the standard on Crowdcube, not sure about Seedrs tbh.


#149

They’ll have 7m of issues, and I believe it is all prefunded and announced before the crowdfunding.

Anyway, all their regulatory filings and full details are up at their website, so there’s really no need for you to make accusations and assumptions.


#150

Dozens shared this on their forum

You can now also request the “Pitch Deck” on Seedrs.


#152

I have heard that if you invest in Dozens they will/might give you an early access code? Can anyone confirm this?


(Simon) #153

I’m sure I saw a post where they said they wouldn’t. However I can’t find it now.


#154

I found only vague statements on preferred access to bonds and a fancy card but not sure if that includes those codes. I am still places 4600 :frowning:


(Simon) #155

Found it for you.


#156

Thank you @SimonF I thought so now I got confirmation. Thanks for digging this out.


#157

So what are the interest rates on offer when the £50k marketing budget runs out - i.e. after the first £1m worth of bonds?


(Simon) #158

Not sure if it’s been mentioned in these links but a lot of info regarding them: