OTHER Start-up Investments through Crowdcube Seedr etc


#1

Has anyone invested in OTHER companies through either Crowdcube or similar platforms? If so what companies have you invested in and why?

Are there any other companies you’re really excited about?

I’ve been looking at other start-ups on Crowdcube and just wondered if any one else does this sort of thing regularly.

Note: I fully understand the risks involved :blush:


(Colin Robinson) #2

I invested in Droplet through Crowdcube as I was a heavy user being based in Norwich. Unfortunately things didn’t work out for them and they’re still seeking a buyer.


(Michael Tinsley) #3

Invested a tenner in Redchurch brewery. Was announced in work that we (Waitrose) were going to start stocking it, so thought it’d be an interesting thing to follow. Also got a 10% discount card for the London brew tap, and they do some exciting (and really good) beers


#4

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 :heart_eyes:


#5

Interesting! What constitutes an ‘exit’ if the company is bought or lists itself on the stock market? In the three cases you are referring to they were both bought by other companies. Interesting you guys have put things in perspective. Sorry for my very inexperienced questions but the companies which have posted paper profits would only give you actual profit if they decided to buy the shares off you, listed on the stock market, or the company was bought by another company. If that doesn’t happen what happens long term?


#6

Hey! Most of them state in their exit plan in the pitch they want ‘a trade sale or IPO in 3 to 5 years’. If after 5 years the company had been successful but had no sign of an exit there would be hundreds of shareholders harassing them to achieve it and they may have to actively seek a buyer or maybe buy the shares back themselves, or think about floating on the stock market if big enough. I don’t think there could be a successful startup that just completely ignored investors desire to exit.
With unsuccessful companies however, you could be locked in for a very very long time. Probably best to just write it off/forget about it.

Both Crowdcube and seedrs are currently working on their own asset match platforms to enable investors to exit in the circumstances where your investment has paper value but it’s too early or too difficult to get your exit at this time. Not sure if they’ll be able to solve this age old problem of investing in tiny companies.


(Henry Pedro) #7

i’ve invested in a few companies

Crowdcube themselves
Zing Zing - Chinese Takeaway
Freetrade - App-based trading platform
and Monzo

none have exit has yet.


#8

You’ve got a promising portfolio. Surely Crowdcube itself will give you a profit? It’s frustrating when companies pop up and its the wrong time for you to invest or you miss it. You have to act quickly!


(Henry Pedro) #9

cheers @topdog

i’m hoping so. but i am starting to get a little apprehensive with the lack of exits (though trying to balance this with the long term view)

an interesting blog thats fuelling my anxieties


(Sacha) #10

I’ve invested in a few:

  • Monzo
  • Wealthify (robo-investor, managed online)
  • Hop Stuff Brewery (had already bought their products and visited their taproom long before I invested)
  • Freetrade

(Danny) #11

I’ve invested in:

Monzo
GripIt
Vita Mojo
Six to Start


(Hugo Cornejo) #12

I couldn’t resist and invested on Sugru (last Crowdcube round). The product is so awesome that I just want to support it :slight_smile:


(Hugh Williams) #13

Just Monzo for me, but looking at a few others. Feeling that its pretty long-term though.


(Izzy) #14

Monzo: for obvious reasons…
Chapr: Was a customer in the past, feel like they are doing well. Only put a tenner on them though.

Have see a few others that sparked my interest but as others have said, not many exits and guess this is more of a long term punt than short term gains


(Richard Bairwell) #15

I’ve got:

  • SimplyCook
  • TasteCocktails (although they are moving more to ILoveGin.com as a drink subscription service)
  • 2x Monzo

Like my shareholdings, I’m in it for the long game rather than short term profits. Just wish I had made more from Cadbury and ARM…


#16

Just seen Revolut is asking for money Via Seedr investing Platform. Anyone going to give it a go?


(Henry Pedro) #17

already posted here


(Bruce) #18

Definitely agree that sometimes benefits are almost safer for the mind than exits. WIT gave you an invite per year to 25% off night which means the £10 pays for itself.

However obviously if you’re hoping for something like a brew dog exit you’re gonna want to invest a lot more than £10