When companies seek crowdfunding and offer 10% equity with a target of £100,000 for example, what happens when they receive 200% funding within the pitch period? Is equity only offered to the 1st 100%, does the company release more equity, is the original equity watered down or what?
They didn’t allow over-funding. I imagine with the much larger investors now, equity is quite tight and so they need to be precise with how much they are offering.
They carved out £100 million I think it was £80 million came from VCs and £20 million from crowdfunders - this needs checking though.
Well from a technical standpoint they are overfunded whether they set the bar lower or not (they’d still have to offer more equity) - I wouldn’t put much thought into whether it is overfunded or not though as that shouldn’t affect your investment decision.