Crowdfunding and blocking


(Duncan) #21

This isn’t about generalised investments. It’s specifically about startup investments.


(Duncan) #22

@Dannytc Will you be investing?


#23

But a start up, can also be seen as investing in something you want to do well, some people may do it to be a part of it, they may invest a tiny amount, not everyone will go in with the mentality of thinking it will make them money.

I think we need to remember it’s everyone’s personal reasons, as long as they have considered can they afford to potentially never see the money again, then we should be encouraging people to learn about where they are putting there money?


#24

Same common sense and knowledge/research is required for startup or seasoned company most of the time. We start to make mistakes when heart and emotions take over and that happens mostly when putting money into startups. Again, that’s my personal opinion.


#25

@duncang - I will be and personally proud I’ve got to a position I have money left available to do so, and not gambled at a bookies, or bill unpaid stopping me being able to make this decission. If that makes sense ?


#26

But you seem to be basing this on the assumption that a gambler has little affordability/accountability, and an investor has full understanding of their finances/decisions.

If that was the case, I’d agree with you.

But again, I’ll refer to the crowdfunding thread… There are very few seasoned investors there, and a lot of people who will be doing so because they are caught up in this wave of Monzo.

I imagine (based on what I’ve seen), that there will be plenty of people who probably can’t afford to lose too much money (if any), yet will still be purchasing Monzo shares because of their love for Monzo.

Isn’t that in itself a gamble? All be it not a roll of the dice gamble with an instant decision, but a gamble none the less?


#27

Yes but not the type of gamble to be sweeped under the Gambling block functionality… Otherwise should we be including persons? Stocks and Shares ISA etc ?

It’s different to the impulse based gambling. My day job involves risk/gamble based discussions but doesn’t make think this is like being at the bookies.


#28

Oh, hang on. I think we are talking about two different things here.

I don’t think it should be part of the gambling block.

But that wasn’t the question (at least, I didn’t think it was) - It was simply, “Is Crowdfunding a gamble?”

So you are saying it is, but it’s not the same as the bookies (which I agree with).


(Jack) #29

Agree with @Dannytc here as he’s someone who’s been in the position. He makes a valid point especially when comparing it to pension investments.


(Dan) #30

It’s definitely a gamble in the sense of not knowing the future outcome. That theirs risk involved with money. And if we’re taking about a listed company: knowing when to continue or cut your losses.

But those same factors are inheriently anywhere we face a potential “free” increase of money.

Like building a startup with your own cash. Is that a gamble? There’s inevitably skill/sound entrepreneurship involved (arguably similar to due diligence in an investment) but there’s also some luck involved.

Even maybe applying for a new job. There’s risk involved moving from a comfortable employer to the unknown at the prospect of bigger riches. It’s an informed decision too, but can you ever really know whether it was a good idea/worth the money until taking the plunge?

Personally im in the camp that an investment is not the same as gambling. You are taking risk regarding money, sure, but I don’t believe (at least it shouldn’t be) impulsive. It involves a lot of research, planning and considered thought.


#31

Do you think this differs when talking about start ups specifically (given their historic failure rate?)


(Tom ) #32

Is it fair to say “a gamble” and “gambling” are different things?

Investing in a start-up is “a gamble” but it isn’t “gambling”.

Edit: Ooh. Cake day.


(Duncan) #33

It’s interesting to count one in and not the other, I think. Both involve potentially large amounts of money. Both involve high risk / high reward. Both involve the rush of endorphins on a successful outcome.

No, because pension funds do the polar opposite - they trade across the stock market (and other markets) to reduce exposure to any particular item. That is responsible investing.

Yes, perhaps it should.


(Dan) #34

I don’t think so.

I think statistically startups have a much higher chance of failing and that should be factored as part of any other research into whether an investment is worthwhile.

I think using your own perception of what makes specifically startups good, though, is a an important part of deciding which to invest in.

With regards to Monzo specifically: can you see them getting to the finish line? Do they have some secret sauce & is it working? Is their secret sauce similar to already successful companies?

The risk in a startup is definitely an order of magnititude higher. I still don’t think I’d call it gambling though.


#35

It almost feels like a lot of the opinions are similar, it’s just the wording “gambling vs a gamble”.

But I agree with what you’ve said.

No one knows… It’s a secret :wink:


( related to Monzo CEO, Investor in Monzo ) #36

“Both involve the rush of endorphins on a successful outcome.”

Im looking forward to the next 5 years rush :slight_smile: fingers crossed


(Is Santa here yet?) #37

Crossing a busy road is a gamble, but it’s not gambling. Everything carries some element of risk :woman_shrugging:


(Duncan) #38

Should the gambling block prevent you investing, then?


(Kenny Grant) #39

Investment.


(Nick) #40

To me, gambling resulting in an addiction involves a relatively short-term feedback loop. You put the money down and you’re looking for a result in relatively short order.

Therefore investing in illiquid shares isn’t going to scratch that same itch, because any return is years down the line at best.

That said. People could still end up making ill-advised investments because they let their heart rule their head. This would be imprudent financial behaviour and not to be encouraged, but not gambling in the sense described above.