Chip are masters at conning/enticing the crowd; yet another crowdfund dangling the carrot of a VC.
Their saving grace is they’ve pulled an equally large masterstroke capitalising on the base interest rate rise to boost their important metrics.
Update from Simon today:
Reflecting on our journey over the last 10 months, Chip has had an unbelievable year filled with remarkable achievements.
Our assets under administration have grown 10x to over £3 billion. We’ve achieved our first month of profitability and our annual recurring revenue is on track to hit £20 million, year to date EBITDA -£1.95m, EBITDA Q3 +£524k. To build on this phenomenal growth, we’re opening up our crowdfund to let our new users invest in Chip and join our journey.
This round values Chip at £167,860,000 representing a 35x increase in the value of the business since our first crowdfund in 2017.
Our new share price is £2.026272, which represents a 12.75% uplift in the value of your shares since our last priced equity round in March 2022. If you invested in our first crowdfund, you’ve seen an uplift of more than 815%.
As you know, our 27,000+ crowd investors are one of the greatest assets this business has, and we regularly receive emails from new customers asking if they can join our community.
We therefore will be targeting this investment at allowing our new customers to join the shareholder community too.
So, the board has taken the decision to open up an allocation of investment to allow our new customers to become investors in the business too. As existing investors, I want you to be the first to know about this exciting news, which will enable Chip to grow even faster.
Pre-emption rights are reserved for the A-Ordinary shareholders, however the board will allow existing B Investment & B Voting shareholders the opportunity to grow or maintain their existing stake too.
This will enable you to prevent dilution of your holdings and maintain or increase your percentage stake in the company under Article 4.2 of the company Articles of Association.
As you will have seen from our recent shareholder update, we believe Chip is in the strongest position it’s ever been in and has no immediate need to raise further Capital. However, the board is carefully assessing the potential added value of a strategic investor offering existing investors the opportunity to sell shares in the coming months.
This crowdfunding round in particular is focused on enabling new investors to join our journey.
Source: [Crowdfunding] Chip - #59 by TickTock - Startups Crowdfunding 🔨 - Freetrade Community