Just an observation about Crowdfunding as I’ve pivoted in my approach recently and would appreciate thoughts.
1: I’ve historically invested almost exclusively through Seedrs and Crowdcube, About 50 investments from £5K down to £100. If, and it’s a big if, I was to get full current value against their valuations I’d have a 4x return from the past five years I’ve been doing this. (Freetrade, Monzo, Bird and Blend make up 75% of that return). I clearly won’t get all of that but they’re also still growing so will be interested to see where I end up. It comes with its own fears, what if Freetrade goes to nothing, what if Monzo goes to nothing…
2: I read Jason Calacanis’ book over Christmas where his main thesis is that your investments should be in Silicon Valley almost exclusively to get the outsize returns we would all like. (I’m not looking for a critique of this, the book is compelling on why this is the case.)
3: I would add that I believe UK fintech can also give outsize returns, although the time of cheap valuations may be behind us.
4: So my thesis is as follows:
a) in the UK continue to invest almost exclusively in Fintechs unless something special turns up
b) start loitering around US crowdfunding sites with a view to try and get Silicon Valley based startups. I’ve been accepted into a good syndicate and, I have to say, the deal flow is really exciting me already.
So those are my thoughts. I’m looking for outsize returns and think that focusing in on these two areas I’m more likely to hit them. That means being strict with myself about opportunities outside these areas which will be really difficult.