This is certainly a first for me after 6 years of crowdfunding investing, ahem gambling A few quick exits yes but certainly not ones that actually have an ROI. This one was different. I invested in TrustStamp (via SeedInvest) in Aug 2020 and last week converted my shares to stock that is trading on the OTC here in US. Cost $7.75 each / trading at $16.50. Not bad double your dosh. If only there were more like this
That’s cool, but if it’s a UK investment with EIS you don’t want it to happen that fast, 3 years and a day would be ideal
Although I guess if it was converted to shares and you didn’t sell you’d keep the EIS benefits?
I’ve not looked into crowdfunding much, but I thought you’d want much better returns than just doubling, just to cover all the ones that flop completely. Or are they generally more reliably successful than that?
Double Dosh in a year is ok. Viritech raising on CC at the moment is hoping to offer investors a chance of liquidity in 2022
“ Our current plan is to list on AQSE in London in early 2022. The AQSE Growth Market is a primary market with a regulatory environment designed to meet the needs of small and mid-cap issuers wishing to obtain a quotation on a public market to access growth capital.
One of the reasons we are so keen to involve Crowdcube investors, is that we have been advised by AQSE that a strong retail investor-base is a real plus for companies which list - have a look at this excellent interview with Alasdair Haynes, CEO of Aquis Exchange Plc - Hardman Talks | Alasdair Haynes of Aquis Exchange tells us about the exchange of the future - YouTube
Companies on the AQSE Growth Market are eligible investments for the full range of unquoted company tax reliefs, including capital gains and inheritance tax. They are also eligible investments for ISAs and EIS.”
Exactly right that would be the ideal timeframe for the UK but no EIS as it’s a US org and I’m located in the US. There are some long term tax incentives for crowdfunding over here plus capital gains are capped at 20% for equities held for 12 months or more.
That’s a good question. I’m pretty sure (someone UK based maybe able to confirm) that as long as there isn’t a liquidity event (ie you don’t sell the shares) then EIS benefits would remain
You are exactly right! Defo want more than double returns for at least some to cover the other ones that deliver zilch. Ideally 2/3 nice big juicey ones to fully cover all the others.
What I would say is strap in for the long term as it’s usually 7-10 years before positive exits occur, not the 3-5 years they spin in their pitches. This is why I found this case interesting after just 9 months, extremely rare…
Good luck out there
Thanks for sharing mate - sounds similar
Correct, as long as you don’t sell before the three year period you keep the benefits
I have been telling the Mrs my ship will be coming in 3-5 years and now you say it will be 7-10 years. Phew! Best not say anything.
Thank God for Freetrade IPO ing in 2024 so says Adam can’t wait that will be a x10-x30 return
Need Freetrade to bail out my failed crowdfunders!
I totally hear you! If FT does IPO in 2024 that will be 7 years since my first investment. And boy it will will be worth the wait
Sooo true for me also
If Freetrade IPOs at any price higher than the last raise I no longer care what happens to any of my other crowdfunded investments
You’re all set mate. It’s already double that now (7 quidish) with plenty more runway from here. That’s what I keep telling myself anyway
If Trade Republic has a valuation of 5 billion with 1 million customers,then when Freetrade conquer Europe,Australia,Canada in the next 3 years they will easily be a 3-5 billion company.
I also invested in TrustStamp via SeedInvest. I’m holding until they have their $75M raise and make the move from OTC (and Euronext Growth in Europe) onto Nasdaq…that should give me a much better multiple. And might just wait some more after that although gut feel is that they will ultimately get acquired.
Ah good one. I’m currently still hodling as well as there is plenty nice upside from here. Nice to have it liquid tho
Absolutely. A good quality business too vs. a lot of the rubbish.