Kenny kicked off this conversation after Dave mentioned this:
I find it fascinating to hear which crowdfunding options people choose and why. I too avoid retail, restaurants, food, and most importantly hardware on crowdcube - just too much chance of failure. In fact looking at crowdcube I’ve invested all in fintech mostly by accident. My tally so far:
- Marketsflow - put a small amount in for a crazy idea (AI/Machine learning for portfolio managment)
- Coconut - I see this as a play to replace accountants, not a bank account, liked the pitch
- Monzo - I’ve been with them since the alpha and like the ideas of the founder
- Freetrade - we all know this one, I’ve long wanted low cost investing in an app and was really pleased to find freetrade - seems like a sure thing to me!
Ask me in 10 years whether this was a good idea How many crowdfunding rounds have others here invested in?
I do wish there were secondary markets for crowdfunding - feel like crowdcube is missing a trick not implementing that as they could collect fees on every transaction, but perhaps there were regulatory hurdles.
So my crowdfunding portfolio is thus:
- Good and Proper Tea
No more crowdfunding for me, it’s no longer part of my strategy. (Except maybe top up my Monzo/Feeetrade shares if i get the chance)
Freetrade, Chip, Tandem, Crowdcube, Plum, Squirrel, Assetz, Money Dashboard. A mixed bag in performance. Tandem’s a dog: I tried but failed to get in on Monzo.
My original idea had been to try approach the crowdequity in an index trackery way: do 5 minutes due diligence to filter out the obviously mad (to me) ideas and otherwise invest happy-to-lose tiny amounts in many opportunities. (My rough approach to investing is >95% index tracking, <5% risky business, and crowdequity is a bit of that risky business.)
But in reality I started with fintech and learned I had no interest in doing even the 5 minutes due diligence, and I’ve pretty much stopped crowdequitying now.
They’ve raised some more money recently, should be good to see what the new share price is once it’s complete. If you brought shares in the anti-dilution round then on paper you might have broken even, or even be in paper profit.
Anyhow it’ll be good to get a update from them. Crowdfunded companies are not the best when it comes to updating their investors.
Solar 350 - current leader on share price, I got in at £2.50 ( and then claimed 50% SEIS), latest price update was £30!
Freetrade - soon to be worth Billions!
Pod Point - Not sure what they are worth now, but they seem to be making good progress, recently got contract for charge points in 600 Tesco car parks
e-car club - already exited, got ~3X my money back
Doorsteps - not really confident in this, I’m now pretty dubious about online estate agent market, probably wouldn’t invest if it came up now. Having said that they have raised again at a higher price since I got in
Nanusens - mobile phone sensors, not sure how this is doing they have been having supplier issue, but are trying to sound upbeat in recent updates
WiseAlpha - Bond market thingy
Movie Collective - Most film ones are for just one film, this is for a number of planned films. Not confident in making much from this but I liked their ideas
Wave - mobile app thing, again not that confident now. Not heard much recently
None have failed outright yet, there’s a couple I almost regret (No regrets till it actually fails )
and I think the first three look like potential winners
Incidentally, at most recent available share prices, the unrealised profit on just the top 2 more than covers the cost of all the others so I’m pretty happy so far
Yeah, charge to experience. Same here, I’m also late to find out about Freetrade as I wasn’t really into crowdfunding that time. Glad I managed to be in R3. Not bad.
Except for Weswap (2016), all my investments are just recent so nothing failed yet. Invested into a total of 19 companies. Can’t believe it! I thought I only had approx 10. Most of these are just little amounts though.
WeSwap - Travel money
Oddbox - Wonky veggies
Pointvoucher - Gaming and voucher platform
Smarterly - Letting people invest through payroll
Freetrade - Yay!
Graphene Composites - Creating shields against low energy gun and knife attacks - and it fits in a school bag.
Daisy Green Collection - Aussie restaurants
NowRx - online pharmacy
PACK’D - functional smoothie kits
Awesome Merchandise - print and merch
Tuk tuk chai - Indian ready-made iced milk tea
Propifi capital - peer to peer property crowdfunding
Gohenry - cards for kids linked to their parents
Redemption Brewing Company - Just because i missed out on Brewdog.
Daily Dose - unprocessed cold pressed juices
Wise alpha - bond market
Coconut - current account that takes care of your tax
Seven Brothers - put in £100 because you get £80 beer voucher.
EDIT: Jaja - mobile credit card. Still in the closing process so it didn’t show in my portfolio.
Brilliant idea but how depressing that this is a thing that needs to exist
True. And I might just regret why I only put in a small amount on this one because they’re actually doing really well and so much ahead of their timeline as they got easy support from school heads and officials possibly making it a requirement in schools to have their walls installed with GC technology. Really hoping this will be a successful one because it can save lives.
Monzo - Everyone knows this one, got in super early too so well happy with this
Brewdog - Got in the last round, lovely beer being sold around the uk, planning to move to the USA
Andersen EV - Posh looking EV chargers, niche market but if someones buying a 100k plus car they’ll fork out for a nice charger
Doorsteps - Online estate agents with super low fees
Awesome Merchandise - Creating custom clothing and looking to expand to USA
Playbrew - Cool little brewery that wants to distribute 80s style beer
Cell Guidance Systems
COmpare & Share
Wow - didn’t realise there was so many, but that is spread over 4 years. I think now my crowd funding days are over, unless it’s an exceptional company. Didn’t like Seedrs way of doing things, and none too pleased that Crowdcube have quietly introduced an investors fee.
It’s an interesting point, I wonder if Freetrade go back to the crowd whether they will negotiate with Crowdcube to drop this fee which wasn’t charged on previous raises?
My thesis is that:
1: almost any Fintechs are good to get in early
2: there will be consolidation in craft brewing for the established ones to survive
3: buy into things I like
4: sometimes the rewards are worth almost as much as the investment
With that in mind here are the ones I can remember…
Monzo (1st round)
Freetrade (recent round)
Skipping Rocks Lab (Ooho)
Cauli Rice (Fullgreen)
Hybrid Air Vehicles (crashed zeppelin)
Dirt Factory (going nowhere fast)
Craved (did it for the rewards)
Cupris (ear health)
Wave Application (like FindMyFriends)
The Cheese Truck (I really like cheese)
Me + Em
Bluebird Tea Co
The Lakes Distillery
Hop Stuff Brewery
Northern Monk Brewing Co
Vita Citric Spirit
Bonaverde (coffee machines)
The St Andrews Brewing Company
Fiorito (who doesn’t like Limoncello?)
I’ve cashed out a bit on Brewdog and did really well on Chapel Down and a few of my companies have gone bust. I’m readjusting my approach to investing and moving to more liquid investments with more certain returns. I regret around five of these investments outright but I’m happy and excited to be an investor in most of these. I’d recover my costs if just Brewdog and Monzo went public on their current valuations so hopefully at some point in the future I’ll have a profit. More than anything I love being an investor in companies and I really enjoy watching their successes and growth.
I doubt it - they got a lot of flack for the way they introduced it just as they were crowdfunding themselves, but they still stuck to their guns. I personally think it’s pretty short sighted, as without investors they have no business. And the investors are the ones taking all the risk - checking through my list above I think at least 4 have quietly gone bust.
Wow - and I thought I had a long list! And don’t worry, when Freetrade hits a $Billion you’ll make all that money back
Do you know if Monzo’s most recent round of investors will have to pay this?
They definitely don’t. For whatever reason Monzo got special treatment!
From what I read it is going to be on the confirmation page when you make an investment, so if you didn’t see it there you should be fine.
There was another company who did a small follow on round where the fee was waived.
I know Crowdcube’s platform fee has been negotiated down from what they’ve advertised for some companies in the past, depends on how badly Crowdcube want you I guess.