Which crowdfunding companies have you invested in?

#41

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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(Michael Mccarthy) #42

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

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(Alex Sherwood) split this topic #43

A post was split to a new topic: Morpher folding helmet tech

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(Jack Bailey) #44

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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(Dave Smith) #45

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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(Stephen Halley) #46

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.

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(Jack Bailey) #47

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

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(Kenny Grant) #48

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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(Dave Smith) #49

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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(Jack Bailey) #50

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

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#51

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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(Dave Smith) #52

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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#53

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

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(Jack Bailey) #54

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

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#55

Mainly on the community forums? Interesting model

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(Emma (#20 😎)) #56

Invested in Pollen + Grace after the Q&A the other day. Have a good feeling about them

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#57

Crowdcube, Freetrade and Mr & Mrs Smith

However, now I stopped investing only in UK startups. I signed-up to the crowdfunding alerts from crowdtures.com so I can also easily monitor the international space as well and diversify a bit my portfolio

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(R) #58

I wish I had managed to invest in freetrade as I’m loving this app/community. Sadly didn’t hear of freetrade till afterwards. I just signed up with Crowdcube last week for the first time, and I invested in

  1. Advantage Clean tech -retrofitting diesel lorries to be cleaner/more efficient.

  2. Festicket - Festival ticketing website that had some decent named investors already onboard.

  3. Proprio - Property based ISA

As I say, just a few test ones really as I just signed up. Loving this thread will follow closely.

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#59

Freetrade
Go Henry
Crowdcube
Verv
Coconut
Monzo
HyperSciences
Uniti - Electric Car

Not sure if I’m prepared to do anymore unless the above have additional rounds.

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(David Kent) #60

I put down for Monzo after missing out on Freetrade. I’m not sure when it will pay out but I only put down just over a grand, so I don’t mind seeing that money again for a long time!

I’d say it was less of a logical decision and more an emotional one, I buy into what they are trying to achieve. That said I am watching the Apple credit card very closely now!

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