Megathread - Crowdfunding

That’s the price they were in 2017 so not much of a profit!
Seedrs

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Not the same as Freetrade so far :slight_smile:

It would have been far better to have a huge UK company corner the market and potentially take the world. Now we’ve got the US taking Seedrs out, and I’m sure Crowdcube will be next. Not sure competition rules are keeping up with a global economy. UK’s lost the chance to lead here…

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Umm. As @saf suggests

Makes me think that one of these companies was on its knees and the VC wanted out. Moreover the combination of Crowdcube and Seedrs would not have resulted in the capital injection that Republic is bringing to the table.

When there are acquisitions savvy investors should ask themselves what the acquisition is really about.

nope, crowdcube is able to maintain growth so receive investments, they don’t need acquisitions

That would be great if we’re able to access shares for Klarna. Hopefully the interest also increase for Moonpay, Dija & Nordigen.

Dija were acquired by Gopuff

And it isn’t going well apparently

It’s weird. They are only doing a secondary offer, so is it the case that somebody wants to get money off the table?

They shouldn’t need any further investment from crowdfunding considering their mega round earlier this year.

It’s getting crowded!

Seemingly valued at $45.6bn in latest round. Crowdcube states it’ll be a 5% discount from that round, that implies a $43.3bn valuation. Someones trying to cash out, good for them - must be a big haul, but not a very good signal though. Best case its an early (ex) employee that wants to cash out? Well regardless, I agree with not joining secondaries and honestly, for this size might as well go for public markets…

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Absolutely this. The CMA are a waste of human skin. The market is not equity crowdfunding, which is a niche, it’s equity crowdfunding vs every other form of financing. So much for global Britain.

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Totally agree! that does not seem good at all… someone is trying to cash out big

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Both Seedrs and CrowdCube are losing money so both needed to scale to reduce costs as well as all the new products they are both launching.

Be careful on buy now pay later

See that Crowdcube are now lookig to get secondary sales done at 5% discount to last round . Not saying Klarna is not a very good company but need to be aware of what the market now thinks of the sector

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I hope Republic will change Seedrs’ model to its model - i.e., impressive due diligence, zero charges on investors! Then I might open an account with Seedrs.

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Here’s a new one for you. I have been reviewing and assessing these guys for the past few weeks and this week I took the plunge and invested.

I have been recommended this one from a few different sources. In particular Angel Notes who rates them highly against the following criteria:

Product Validation
Large and Growing Market
Sustainable & Scalable Business Model
Healthy Balance Sheet
Competitive Advantage
Sustainable Economic Moat
Sufficient Runway
Team
Valuation

https://wefunder.com/rasa

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Thanks. Keep 'em coming!

This looks like a cheap copy of Freetrade and the Freetrade idea. Anyone notice they are also in the exact same building that Freetrade used to be in? :rofl:

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The BNPL space is interesting. Huge valuations but at a time when Amazon has dropped Visa due to their transaction charges, an alternative method for consumers such as BNPL may just be the solution. Both are about consumers taking on debt so it may come down to whether BNPL ends up cheaper for consumers and merchants.

Pre Ipo investments like Klarna are a different game compared to seed or post seed investments. The expected returns usually are 2.0x, so a potential new investor in Klarna should expect a valuation of E100bn in 12/18 months (when the IPO will happens).

2 warnings:

  • often the shares sold in secondary pre-Ipo are ordinary shares and they come after preferential shares in the distribution of the proceeds in an exit event;
  • in case of an IPO, investors usually have a lock up period (they can not sell the shares for a number of months). In 2021 around 50% of the IPOs fall below their issue prices…
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