Which crowdfunding companies have you invested in?

Hi @Lbiney, welcome to the forum.

In answer to your question, the only one I’m aware of which might have another round soon is Freetrade (I think they are planning one in 2019?) Monzo just had a round so won’t be doing one for a while as they are farther on than the others. Coconut may do another one in a year or so as they’re at an early stage. EIS investments are best IMO if you can as you can set them against tax and I think they are free of CGT if you manage to sell.

However, if you’re just starting with investing in general I’d say an index tracker fund with low fees might be a good bet initially and to steer clear of crowdfunding until you have other investments and spare money. Freetrade has lots available and it is far less risky than crowdfunding.

Apologies if you already have other investments and are well aware of this. Crowdfunding is a long term bet, and highly illiquid and risky compared even to shares of established companies.

I’m not sure how many more crowdfunding investments I’ll do, but it’s certainly a really interesting area, exposing very early stage companies to normal investors like us. I’ll be interested to see how it develops in parallel to established markets over the next few decades, and whether I look back on these decisions to invest with fondness or regret.

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Kenny thanks so much for the info will learn more on topic n invest.

Also which one of the attached do I pick to start?

WHAT IS AN INDEX TRAVCER FUND? ?Examples please do I can purchase some on Freetrade

Thanks

Thanks for your detailed explanation ( very informative n helpful)

Where can I find if I am allowed or can start. I uploaded the app seen the shares on offer but can’t find where to link my accounts how

These list above are CFs right? Where can I find and buy all these shares for example Free trade? Or these listed share come and go

What is the meaning of all rounds or 2nd n 4th rounds and both rounds? What is punts. I want to start investing today if nothing at all at least Freetrade

5 posts were merged into an existing topic: Ask your beginners questions here :hatching_chick:

You can only invest in crowdfunded companies when they have a funding round, hence the reference to round 1, round 2 etc. These are not publicly traded shares so you can’t buy them unless the company in question is selling shares. You can’t sell these shares either unless the company IPO’s (goes public) or is bought by a bigger company which could take many years and might never happen if they go bust.

Index tracker funds are available on freetrade and a good option if you’re just starting out. These funds invest in many companies and you won’t lose all you’re money if some of these companies go bust.

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Seedrs have an active secondary market where you can buy and sell shares

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Interesting read and have looked at a few Crowdfunding companies however I don’t fully understand how say someone was to invest in “Monzo” they might see a return on the money as they are not a public traded company…? someone able to explain this one for me?

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The hope is that either they will IPO and become a public company, or be bought out by a bigger company for huge amounts of money. I’d prefer IPO as investors would have the opportunity to either stay invested or cash out if they wanted

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I also found this an interesting read. Hope Fashion, Derby Brewing and Sugru a couple of years ago for me. Unfortunately I was unlucky in the last ballot for Monzo. Sugru effectively going bust put me off, which made me realise crowdfunding had too many unknown risks for me. I’m focussing now on finding value in the ftse250, which i believe is there, particularly in these uncertain times. And there’s much more financial transparency.

So you’re basically chancing it that the company becomes a public company or is bought by another company?

With crowdfunding (and all early-stage investing) the risk is higher, however the potential reward is higher as well, if you manage to pick the right companies - if they don’t run out of money, if they grow sufficiently, if they ipo or sell to another company within your time-frame. That’s a lot of ifs.

It’s certainly risky, definitely illiquid over a period of 5-10 years, and quite possible you’d lose all your money. So IMO not something to get involved with in a significant way unless you already have significant investments in less risky assets and are willing to wait a long time and lose at least some of your bets.

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I have had one that sold to a bigger company, I tripled my money on that one. I think they sold a bit early. I think there’s potential to get much more than triple if the company is a big success and IPO’s

but also there is a much larger risk of the company going bust and losing the lot compared to traditional investing. Never invest what you can’t afford to lose in a startup

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Curious to know which company did you have that paid out? Thanks for the advice - also what does IPO’s stand for?

Initial Public Offering - which is where a private company offers its shares to be bought by the public for the first time and the shares get listed on a stock exchange.

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It was a company called e-car club. It was a car hire company with all electric cars.

A quick google search shows they are still growing and opening new locations, I would have preferred to stay invested a bit longer to be honest

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Dozens soon anyone? I’m tempted. May wait until I’ve got acces to the app to decide

Have heard a few people talking about Dozens - Unsure on my thoughts though