I think this is a very lucky result for nutmeg. Theyâve been around for years and have not come close to making money. Lots of robo-advisors have left the market because itâs difficult to charge money when youâre competing with âjust chucking it all in an etfâ.
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Just got email:
As a shareholder in Nutmeg, weâre delighted to let you know that theyâve just announced that theyâre being acquired by JP Morgan Chase!
Nutmeg raised ÂŁ3.78m from 2,168 investors in 2019, including your investment. You can find further details on this investment in your portfolio on Crowdcube.
The final price per share will be in the region of ÂŁ30.00 to ÂŁ32.00 (subject to final completion adjustments). This will mean youâll receive a healthy return of around 2.3x. A huge congratulations to you!
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Itâs 51% a year, thatâs more than healthy!
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Got to offset the losses from the crowdfunding graveyard. For every Nutmeg there is a football index or sugru that needs covering.
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I beg to differ: for every Nutmeg or similar, there are at least 10 total duds. But if youâre diversified enough, itâll all come good.
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Youâre right there @lizmcp !! The list of crowdfunding fails is remarkably long.
For anyone interested this is a good thread â> đ Crowdfunding graveyard â°ïž
Yeah, with the risk of a crowdfunded investment going to zero, returns like 2.3X from the winners is nothing special really. you want multibaggers to cover any potential total losses.
At current share price Freetrade alone will cover the cost of all my other crowdfunding investments put together, but the main reason Iâve mostly given up on crowdfunding is the extremely low probability of picking another winner on that scale, and lackluster returns from the other winners Iâve had
Itâs possible to get 2 or 3X from a decent stock pick in a listed company, with the added advantage of liquidity and a much lower risk of bankruptcy. I even made 2X on Apple and they were already the biggest company in the world when I bought them
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Totally agree Dave. There used to be the odd one with potential, but now itâs just a hodgepodge of hobbyists, ideas with jazzy/misspelled names but nothing more, and complete scams. I gave up a couple of years ago. Freetrade is already more than covering all my losses, and Iâm hoping for much bigger things. Got a few other smaller gems, but I just donât think they exist anymore.
Just wondering people who say this is not a healthy return and seem disappointed actually have some Nutmeg shares? Iâm happy with it, would have liked another year or two for it to grow further but happy to take a profit on it.
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Agree with Nick - this was very unlikely to be a zero return so the investment profile was different from normal crowdfunding. Therefore I put more in to it than I would for a high risk start up so I am also happy with the return.
Would have also preferred a few more years - but a 2.3 and healthy IRR is fine by me.
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Were Nutmeg SEIS / EIS eligible at any point of crowdfunding and if so has the lockout period passed? ( only round I can see is from Jun 2019 )
No it wasnât, the company has been around a long time and raised a lot of cash before
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JP Morgan have bought Nutmeg for ÂŁ700m. It says it has ÂŁ3.5bn AUM and 140,000 customers, which is a hell of a lot of AUM, ÂŁ25,000 per customer. Can this be right?
FT has 5 times as many customers, but whatâs the FT AUM? Less than ÂŁ3.5Bn I would guess. Nevertheless, surely this puts FT into unicorn territory.
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The final offer price is expected to be around ÂŁ32.00 per share, before the deduction of certain costs. Estimated fees are ÂŁ0.01 per share
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