I’ve invested in about 10 companies on Crowdcube in the last 2-3 years. No insolvencies yet but no exits yet either. Some paper profits but who knows if they’ll ever turn to cash. That is the huge elephant in Crowdcube’s room… hundreds of successful raises, many tens of millions invested but only 3 exits last time I checked.
I like crowdfunding though because investors are welcomed to share their voice and can feel a part of the entrepreneur’s journey. You can drop most CEOs an email and get a genuine personal reply containing their hopes and fears about the future, which you would never get investing in a large listed company.
There are different reasons I invest in certain companies on Crowdcube. There is the tax benefit of EIS / SEIS which is great for a stable longer term investment as HMRC gives you a wad of cash back and then you still have an investment to your name. Then there are the ones with great perks, good current example being Santamania who are currently offering 6 70cl bottles of gin/vodka/rum for just a £270 investment which is the best perk I’ve ever seen on there. Finally there are the ones with no tax perks or any other real perks but the chance to deliver massive capital return e.g. Mondo. Their pitch on Crowdcube in march last year is what brought me here