Megathread - Crowdfunding

I invested in 2022 with EIS. Since the cash is less than 30% of the invested value and I will have to return the 30% back to HMRC. This is probably a negative return, at least in the short term.

Fully Charged is crowdfunding. The pitch isn’t live yet but there are some details in this video.

REMEMBER it’s on Crowdcube so you’ll experience fees when you’re buying and if you don’t lose all your money through a failed investment and the company actually does well then Crowdcube will come knocking again for their risk free Success Tax.

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Think I will be sitting this one out.

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Their in person expo events around the world seem very popular with big sponsors and big brands exhibiting and I enjoy most of their content on YouTube… I just don’t know why they need more money when they seem to have been growing at a great speed off their own backs.

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Maybe they’ve spent the recent £1.2 million received from their drect investers and need to tap a new resource

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Does anyone have experience with rights issues done on crowdfunding platforms? One company on Seedrs has now announced a rights issue to address a cash crunch. Communication is ambiguous for now where they say they create N new shares with price X to raise N*X cash. X is 1% of the prior share round, meaning a 99% down round with massive dilution.

From public stock markets, I understand “rights issue” as the company issuing rights to existing shareholders to purchase new shares and setting a price R for these rights. Each right entitles to purchase a new share (with variants of multiples n old shares for p new shares) for price P minus the price of the rights. On top, shareholders can choose not to take up new shares and sell their rights for the price R avoiding the obligation to pay P-R (times the number of shares).

Does this work the same way for private companies? Likely a platform like Seedrs will want to simplify this as nominee and run this as a regular pre-emption campaign. Wonder if they’re really allowed to do so.

I have enjoyed watching Robert since scrapheap challenge days and watch FCS regularly. Got a ticket for FCS live last year (but couldn’t make it on the day). Emotion says invest (usually poor outcome lol).

Other than stating they are hoping for a 2025H2 acquisition (giving investors an exit) they seem rather unbothered about articulating their play. Turnover is provided but no indication of costs (that I could see). Edit: not in the deck but on the web page “2022 saw a recovery to £3.9M turnover & £464K operating profit”. Can’t see last year’s number.

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