Megathread - Crowdfunding

I would love to see them grow a bit more before a takeover. It’s really impressive how they have executed in such a short space of time.

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I wish I had been investing in 2015,might have seen this one

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Awesome!!

First round investors will get 332x! Happy days!

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It’s unbelievable crazy stuff​:crazy_face::crazy_face::crazy_face:

My banker investments are Freetrade,Hitmarker,Genuine Impact,Moneybox and Monzo with Freetrade comfortably at the tops and Hitmarker a close second.

My middle of the road investments are Chip,Moneydashboard and Rooster Money

I’m very big on Anderson EV,Finisterre and Cheeky Chompers

And 2 long shots Stablepharma and Hoptroff which if they come off I will be loaded

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Ah we have Freetrade, Cheeky Chompers and Stablepharma in common!
I am hopeful for all of course, but yes Stablepharma could be a game changer financially.

Freetrade is in the bag to be a multiple unicorn no doubt whatsoever,Cheeky Chompers will just keep growing and probably get bought out for 15-20 million and stablepharma has the most amazing product who’s biggest challenge is Power,Corruption and Protectionism.

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Lots of interesting discussion on Twitter saying that maybe the actual return was something like 7x. Looks like there was a separate fund involved and so whilst investors in Seedrs did invest in Senta, they did it via a fund and so their actual share of Senta was heavily diluted. A return is good but looks like for many many investors, it’s a fraction of what the PR is saying.

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The fund is webstart Bristol the fund invests a percentage is across multiple companies hence the lower percentage

You could also invest direct

there are a few funds in seedrs such as there seedrs 100 fund where they spread your investment across lots of companies

Yep, that’s the one. It’s unclear is 100% of the investors on Seedrs invested directly as the PR claims so it would be great to see that number unlocked. And yes Seedrs 100/EIS fund is similar to say SyndicateRoom EIS Fund.

Webstart Bristol was/is an incubator of sorts which ran an “accelerator” like program and followed this with an equity investment into the participant companies. Webstart Bristol raised funds on Seedrs. I beleive they raised 2 funds on Seedrs with each fund investing in 10 companies for ~10% equity each. They also raised money for the Webstart Bristol company which I invested in. As of last update Webstart Bristol owned ~1-2% of Senta. Those who invested in the funds may have had more exposure at a better price than the management company. Senta also ran two crowdfunding campaigns if its own on Seedrs.

The new US regulations from the SEC on crowdfunding (Reg CF) come into effect from March 15th. This allows US companies to crowdfund up to $5m from individuals. This is up from $1.07m and therefore many more companies/start-ups are looking to take advantage of it as they see it as now worthwhile when they are getting more capital and more investors as ambassadors.

Gumroad’s founder has already stated they will be taking advantage of this:

Is anyone aware of any others?

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Don’t think there will be great returns for the Webstart Bristol direct investors . The last filed accounts have close on 177k accumulated losses which would need to be cleared before any divi plus the founder stills owns I think its about 80% so I think the crowd investors are up for (Gain -177k) x 20% . Also a 40k loan to be paid to the founder

Good result for the “virtual” fund investors at 7x or so and the 10x or so for later direct investors

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Couple of the Future Fund investments have converted already.

That one is very strange , lots of inti investors including Steve Lansdown Green Fund and a ton of Invesco Money and they end up asking for funding from the crowd and FF. If it was a good investment would have imagined the instis would have topped up.
Maybe they will put the share certs in the bog in a couple years and pull the flush

Lumio and Freetrade

Wefunder, the leading US equity crowdfunding platform is raising. New SEC laws were enacted yesterday which should make it easier to crowdfund. New EU equity crowdfunding laws are due at the end of the year, paving the way for a European launch. (I don’t know how entrenched Seedrs/Crowdcube are in the EU)

https://honeycomb.wefunder.com/wefunder

No EIS (obviously), but I might give it a punt.

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I’ve invested in them twice so far. Last round valuation $50M, this round $150M. Huge scope for growth with expanded Reg CF. Allows companies to raise more ($1.07M > $5M) which will increase their rev but will also attract more mature companies that otherwise wouldn’t have used crowd funding due to the lower Reg CF cap…

US has a much more established private funding environment, why would you need crowdfunding other than the small niche who want it for marketing purposes.

Yes but what you are missing is that crowdfunding here in the US has been very limited with restrictions on what an individual can invest annually. This all changed yesterday with unaccredited investors allowed to invest a larger amount (based on income/net worth) and accredited allowed to invest an unlimited amount. Combined with Reg CF going from $1.07M > $5M will see a surge in companies crowd funding with bigger raises = strong revenue growth for Wefunder & SeedInvest etc…