Crowdfunding thoughts

Zevvle Chat 🔥
#1

Hello!

We’re planning an equity crowdfunding campaign this summer, and we’re starting to lay the groundwork. The first question is where – which platform? Eventually we’d love to bring it in-house (similar to what Monzo did last year), but that’s for the future.

If you’re interested and have a platform preference, we’d like to hear about it, especially from an investor’s perspective. We need to take into account the terms that apply to us, the business, but each come with terms for investors as well. For example, paying an extra 1.5% to invest with Crowdcube, or paying 7.5% on any future profits with Seedrs.

We’re focused on launching first, but we need to get the ball rolling on a few things, e.g. (S)EIS advanced assurance.

Let us know. :slight_smile:

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May update
#2

Crowdcube is what I use.

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#3

I’ve not got a preference, whichever works better for the business.

I already have an account with Crowdcube though where I’ve invested in Monzo and Freetrade so it would be easier

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#4

Crowdcube crashed when I tried to invest in Monzo (and then sold out in 96 seconds?) but I’d hate for you to have future profits taken away?

Edit: Just read the link, it’s future profits on sales of shares so maybe not as bad as I thought?

#5

Ah, I should’ve clarified – those 2 examples are for investors; we have a different fee structure (with Seedrs it’s 6% of total funds raised, a 0.5% processing fee and a £2.5k completion fee…).

With Crowdcube, if you invest £200, you pay £203 (the 1.5% is capped to £250). With Seedrs, if you invest £100 and sell the shares for £300 down the line, 7.5% is taken off your profit (in this case £200), leaving you with £285.

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#6

Crowdcube is what I use as well so I’d say go for that one.

I used Seedrs last time and wasn’t impressed with the UX, ended up paying (& investing) twice because the experience for accounts pending verification was confusing.

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#7

As a Monzo investor, crowdcube is convenient for me as well!

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#8

I vote crowdcube - having an app is so important :stuck_out_tongue:

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#9

I have used both but prefer Seedrs - if you ignore the fees - it’s just a nicer platform and includes certain protections for investors to protect their interests in the event of future raises.

It also feels like the platform due diligence is of a higher standard.

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#10

I’d prefer no platform tbh

Seedrs and Crowdcube - neither have impressed me.

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#11

Crowdcube is my personal preference if direct distribution isn’t possible. I prefer to pay any fees upfront.

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#12

I would also prefer crowdcube. Seems to be the main platform for all of the recent big fintech rounds

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#13

@nick what are the latest thoughts on crowdfunding?

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#14

Hello! Yes, we’re on it – going to do £100k SEIS ‘seed’* round as soon we can, and currently working on the pre-commitment; as you may know platforms require you to bring a % to the table before going live, which is why they never start at 0. It increases the chance of funding successfully, and the more the better. We’re pending (S)EIS approval as well.

*That term seems to have lost all meaning…

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