Crowdfunding (Upcoming 2018/19 Round) - Updates

[danbeddows (Dan)]

@andrewpclark

They manage a large amount of administration for small companies. Managing shareholders is costly and time intensive, they will potentially be managing this group of investors for many years, in fact it’s open ended. It is fair they are paid for this.

Actually for this, Crowdcube already charge the business an annual fee to “manage investors”. If I remember right, it’s around £1-£3/investor/year.

For this, the company gets:

• A (hopefully) up to date list of email addresses to send out important documents, vote etc
• An interface to send out emails to a large group of users.
• Responsibility for collecting votes, buying and selling legal docs deferred to Crowdcube’s nominee.

I’ll try and find the exact figure - I think I remember a company posting it somewhere. In my view, it’s expensive already to manage shareholders.

Edit: it’s actually £4/year. Although Tom doesn’t confirm whether the entire £4 is Crowdcube fees - I personally can’t think of where else this money would go.

@tom

Administration fees cost around £4 per crowd investor per year. We’ll probably need to pay these for at least 5 years until we eventually IPO. So call it £20 per investor in admin charges.