debeast
(o)(o)
Posts: 238 
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Post by debeast on Feb 11, 2014 8:05:58 GMT
Just wondering if any fellow forumites are onboard there? Just having a poke about at their offerings today  Just noticed this post today www.altfinancenews.com/article/109 on a managed fund that selects 10 start ups on your behalf. I'm a bit dubious about this as you really need to choose yourself don't you. Or are they just playing the odds 9 fail vs. 1 success . Be interested to hear what others think /beastie EDIT: Found some more info |
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Post by chris on Feb 11, 2014 10:56:49 GMT
Warning: the following post contains shameless self promotion. We, as a tech team, have just taken over maintenance and future development of Investing Zone. I should stress that there is no affiliation with AC itself, just the tech team working on this site (and hopefully soon a couple of other sites) that let's us grow the team ahead of AC's growth curve and pool resources, share knowledge, etc. IZ are a bit smaller than Crowd Cube and a couple of the other big players in that space, but they're well funded and come from a VC / angel background so know what they're doing. The crowd equity side of crowd funding is coming under a bit heavier regulation by the FCA than the crowd lending sites so it's going to be interesting to see how the marketplace evolves after April. There are a LOT of crowd equity sites out there and I personally wouldn't expect all of them to survive the next 12 / 18 months. The costs of regulation are going to be a big burden for a lot of them and the little guys are already finding it tough financially. |
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jimbo
Posts: 234
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Post by jimbo on Feb 11, 2014 12:32:44 GMT
debeast, I posted the following link to an Investors Chronicle blog article about the largest Equity Crowdfunding Sites in late November, and am happy to re-post it here: www.investorschronicle.co.uk/2013/11/14/comment/chronic-investor-blog/avoid-the-sting-in-crowdfunding-s-tail-MGSdsjALXwlB5knUprnpoL/article.htmlThe article does a good job of examining the potential dilution risk between these platforms, and the key finding I took away from it is that Crowdcube carries greater future dilution risk than some of the other platforms. It's all down to the class of shares you are issued with at the time you invest, and if these come with pre-emption rights that will force the issuing startup to include you in any future fundraising issues of new shares. Your biggest danger is that a startup you invest in is successful, and they are then able to attract institutional venture capital backing on better terms, you don't have pre-emption rights, so are therefore locked out of the new fundraising round to watch your original stake get heavily diluted. |
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Post by richardiz on Feb 25, 2014 17:14:08 GMT
Hi there,
I'm Richard From InvestingZone - the platform to which Chris refers above.
I'd be happy to answer any questions about dilution, or the other risks involved in equity crowdfunding (and some of the potential upsides too!), and the way we try to deal with them at IZ.
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