The issue is we now know that the company and its board are happy to screw the crowdfunders - who know what other tricks they will pull in the future.
This isnât normal at all. When institutional investors are involved, they are normally keen to avoid be accused of ripping people off. DN Capital and Speedinvest clearly donât care.
I was seriously excited about BNext. Now thinking of dropping my investment in them as well.
It wasnât much, as I donât want to commit too much to illiquid investments. But itâs a matter of principle. This was some underhanded shit they pulled off. This means, for all intends and purposes, that they are dishonest and canât be trusted with proper agency of our investment. Then it becomes a matter of opportunity cost. Give money to them, and in a way reinforce stupid behaviour in the crowdfunding area, or pull the rug under them and at least send a message while funding companies that are more honest and upfront with their intentions?
To be fair, the drag-along clause was not something that they created for the Crowdcube round. Itâs found in the current SHA, created at the time when they raised their Series A. It protects new investors, since they have liquidation preference above previous investors and founders (and now also crowd investors, who are at the bottom rung of the ladder). Essentially, it protects the 22M that VCs put in in Series A.
Thoughts on Oval Money?
Has anyone looked at Brew By Numbers? Live on CC now.
From a multiples perspective it looks vastly more expensive than most breweries that have crowdfunded.
Not sure if itâs just me but struggling to see meaningful justification for the valuation gap.
Is anyone thinking to invest in Nova currently on CC? Looks like a good deal.
Cancelled a large investment in BNext not having this nonsenseâŚ
I also cancelled my Bnext investment. Maybe it will end up being a great return for those who keep it but the way they gave handled this is unacceptable and shows a lack of regard for the crowd investors. This should have been a part of the pre investment legal terms, not a footnote in an investors email update.
Just cancelled my Bnext investment, like others have concerns on the integrity of the business towards crowdfunding investors.
So much noise around Bnext. Folks attribute so much to Bnext as if it always was a public company already in terms of corporate governance⌠if youâd like everything to be perfect, put your cash into a public company, otherwise if you expect a >5x cash return it will be fair to assume that some flops can happen along the way⌠Has anyone for interest checked what the equivalent terms are for Freetrade?
Now at ÂŁ2,733,346 
For Freetrade, as far as I know, a drag-along clause is triggered if a majority of holders of A-ordinary shares decide to sell, no matter the price. Investors on CC hold B-investment shares, which carry no voting rights --hence have no saying if thereâs an offer for the company
Whatâs different for Freetrade though is that there is no liquidation preference (at least not in the articles from round 5). Hopefully this hasnât changed at Series A.
Speaking of shareholdings, Baanx is live on Seedrs, and the info on ârelated companiesâ section looked a bit odd to me. Has anyone checked it out?
When I checked out the Baanx pitch earlier today it had the shortest video pitch I have seen for a crowdfunding company and no pitch deck.
Iâm not sure how they expect anyone to invest with such little information on their company.
Iâm definitely not touching this one.
Breaking news: So my hunch was right! Cowboy, the belgian e-bike startup backed by Index ventures is going to be crowdfunding on Crowdcube. Index are one of the best venture firms in the world, known for backing Facebook, JustEat and Skype, amongst other knockout venture bets. Pre-register here.
Head to the bottom of this post for an, in my opinion, equally exciting rumourâŚ
Capital rise - the property investment fintech, is crowdfunding through a pre-emption campaign here.
Feral horses - the platform that enables investment into artwork, such as banksyâs, is crowdfunding through a pre-emption campaign here
Hop Vietnamese - a startup oriental restsaurant chain, is crowdfunding here
Allplants - A vegan meal delivery startup backed by Octopus ventures. Indications suggest theyâll be crowdfunding with crowdcube, after all.
Handbag Clinic - A startup mending handbags in the pursuit of sustainable fashion, will be crowdfunding soon.
Farmdrop - Challenger Supermarket backed by Atomico. pre-register here
The british journal of photography - A photography business and collective founded in 1854, now monetising their members through competitions. Get the scoop here.
The Small Robot Company - A startup creating robots that farm. Will do a ÂŁ1m round on Crowdcube, having raised this amount one year ago. Previously mentioned here, they have now released their pitch deck here.
Also coming soon: Drinkly, an alcohol deliver startup backed by Brewdogâs founder (pre-register here), Cashmere a p2p clothing rental app (pre-register here) and Hubris One a crypto startup (pre-register here)
Zego - An insurance fintech backed by Balderton Capital; may well be crowdfunding. Key indicators being that Balderton are mutual shareholders in Crowdcube and Zego, and Crowdcube are running a networking event with Zego in DecemberâŚ
Stepladder - A fintech enabling home buyers to save for a deposit through a novel investment product. See why Seedcamp backed them here.
Real Handful - a vegetarian snack startup, may be crowdfunding soon. Check out their website.
Seedrs are building an app, and are currently running user testing sessions
Seedrs have launched their âpre-emption clubâ, a monthly publication of all their live pre-emption campaigns
From an investor PoV iâm not too bothered by the drag along clause, there will always be investors screwing over other investors - I just view it as a counterparty risk almost. Do you know what bothers me the most about Bnext though?
itâs that they present themselves as customer centric and pull this sh*t. Just be honest? Everyone wants to be like Monzo except when it actually matters, it seems.
At a glance, overvalued if youâre asking me. If i remember rightly, theyâve achieved ~400k EUR in revenue, and have 350k users to get to a 42m valuation. Plum had 600k users and similar revenue I believe, but their valuation was ÂŁ15m, a VC validated valuation might I add. Doesnât mean oval wonât be a bagger, but thereâs a material risk of overpaying here imo.
will try to reply to everyone, taking a break for now!
@anon1435622 these posts are great.
It would be very interesting if you added a âwhy you would [invest]â and âwhy you wouldnâtâ line for each item. More work I know 
Small reminder that today is the deadline for the cooling off period, for anyone that is unhappy with any of the clauses.
Also BNEXT have said this in the discussions
As suspected they knew this when the email was sent out.
This is crazy as well:
Even if this is the case, thereâs nothing stopping BNEXT from sharing the extra details. So as @anon1435622 said
Small Robot Company live on Crowdcube
