Assetz equity raise?

You should probably approach Seedrs and ask them. I've not seen their site before this week so I have no idea, but I know that Syndicate Room have people who are able to make such promises (or know that they are not).

Edit: Having just noticed your post a page earlier, you need to make sure you know what you are doing and not because someone on a forum  you don't know says so.

People on this forum really wind me up because they moan that they can't sell a 3 year loan in less than a month. If you invest in this you need to assume that there is no exit and no secondary market. Even successful businesses sometimes need to raise further money on worse terms than previous rounds. Be careful.

This will surely be full long before 54 days. Will Assetz Capital accept overfunding?

From the FAQ seedrs site,

"What is "Overfunding" of campaigns?

After a startup campaign has reached 100% of its funding target, we give entrepreneurs the option of raising more than their target investment amount if the demand is there from keen investors. We call this "Overfunding".

We operate an all-or-nothing model where entrepreneurs must reach their minimum target or investors get their funds back. But if a campaign goes into Overfunding, the entrepreneur will be able to accept any amount from 100% and up during the remaining duration of their campaign (in exchange for a corresponding amount of additional equity). Entrepreneurs are not required to take investment but reserve the right to accept any amount beyond 100%. Investors who invest during this period have the same rights as investors who invested before the campaign was in overfunding, but do not have the right to withdraw their investment or change their mind and must have funds deposited before they can invest. "

I'm worried that some may be getting a little excited and I'd like to ask those who have no experience of investing directly in small private companies to think carefully.
We may think that AC is a excellent company that's going places but that does not mean this offer is a good deal. Don't forget your principals: what's the security? What if current backers call it in? Is the price you're being asked to pay fair? How do you know? What if AC issue more equity? Do you really want to invest in such a tiny unquoted company? Wouldn't you prefer a FTSE100 regulated company with shares that trade at a "fair" price? Are you prepared to not get that cash back for maybe several years? Do you have a separate cash pot for the meantime?
If you have good answers to all these questions then you have my very best wishes but if you don't then please take care.

John

That post is salient and the best written piece of common sense i have seen for a long time(as someone who has a small exposure to vct's as a sideline)!

I would love to add something intelligent but you have hit the nail on the head beautifully!

The only sensible thing I think I can add is high returns=high risk!

Kind regards

Ed

Some good common sense in both the above posts. I would add a rule that I learned the hard way and I have followed ever since, "don't invest what you cannot afford to lose". Some time ago I was advised by someone I knew and trusted to invest in a FTSE100 company, Marconi. I was assured that although the shares had taken a dive this was the time to invest as there was good news just around the corner. Six months later Marconi was completely bust and my investment was worth nothing.

My guess is that most "investors" have the gambling gene but there is nothing wrong with being cautious and well informed. I have just chucked a couple of £k into the Assetz ring and I hope that it will be worth double in a couple of years. However it could be worth nothing but I am fairly certain that the team at Assetz will work their butts off to make it succeed. It is in that I trust. 

Not forgetting, however, that many people round here pay little or no tax, for example getting much of their income in the form of dividends.  EIS does potentially benefit those people in the form of capital gains write-off if that applies though.

You also pay tax on the interest on your P2P investments, don't forget! 

Basically, to obtain maximum relief you should invest a maximum of 3.333 times your total expected annual tax bill, although with the carry back facility you could potentially invest twice that amount [which is why it is crucial to understand in which tax year the share issue will fall]. Don't forget there will be at least one further round of investment however. [Disclaimer: as above]

Hence my statement of the maximum investment of 3.333 x tax liability. If you pay no tax, you'll get no relief, although that of course is just one factor in considering whether to invest.