I like how you explain everything in detail and not assume we all know the meaning of investment vocabulary. Some of us are very new at investing and we need a little extra help.
Yes they get transferred to the stock exchange and you can have them transferred to your brokerage account. That is what happen to me with Trust Stamp which I invested in through SeedInvest.
Great video! It's really convenient that you guys have done this video!I follow your channel and have done for a long time and have just last week signed up to CrowdCube as an investor. I haven't invested yet but will update you as I know more. Cheers Andy & Ben 👍
That's unfortunate. I think the lesson in that case is that 2 investments is not enough diversification - not that crowdfunding is a bad investment in itself. Thanks, Andy
@@MoneyUnshackled yes I did watch the video and was disappointed that you are misleading people. The title alone is concerning since pretty much no one has got rich investing in a company on a crowd funding site. Then there was the comparison you made of how many businesses on Seedrs go bust compared to the average for start-ups after 3 years. Many of the companies on Seedrs have been around longer than 3 years so it's not exactly a fair comparison. By saying only 21% of companies listed on Seedrs go bust you make it seem like it's a safe investment. And then there was the statistic on the average internal rate of return. You made it seem like you are more likely to make more money investing in a Seedrs company than a FTSE company. In reality the Seedrs website clearly states that you are more likely to lose all of your invested capital than see a return or make a profit. And that it's very unlikely you will be able to sell your shares on the secondary market. I just think this video overall is misleading and irresponsible.
I need clarity regarding Equity crowdfunding investments and profit taking. 1)Scenario A: I purchased 100 shares at $7million valuation in 2019 on a startup company. Similarly in 2020, I purchased again on the same startup company with a valuation of $12 million at 2000 shares. Now in 2021, the company got acquired. At a value of $3 billion. I intend to take profits. What’s the amount of my profits? Kindly let me have an input to this pls.
I have recently invested £100 in Moneybox via crowdcube, I found the process easy enough although as mentioned I registered in July and the money was deducted in August. I am now waiting for my shares certificate. I would be great to hear your thoughts on moneybox as I have started using it and find it very intuitive but fear the charges may be quite high. Thanks
I’ve made quite a lot of SEIS/EIS investments over the last 4 years. I think in reality the failure rate is a lot higher than 1 in 5 (more like 50% for EIS and 85% for SEIS qualifying investments. Returns with an IRR of >10% (before tax benefits) are possible but are totally driven by a very small amount (about 5%) of the hyper successful companies which generate 10x + returns. Shame these aren’t easy to pick amongst the ones destined for failure!
Also failure isn’t necessarily bankruptcy. Some investments never materialise to more than an OK salary for the founders, with no real opportunity to exit the investment than to simply write it off and claim loss relief or offer it to the founders at a discount.
Some really interesting points here especially around reasons for failure. Are the failure percentages just based on your personal investments or wider research? Thanks, Andy
@@MoneyUnshackled Hi Andy, great to get a response from you and thanks for the regular videos you post. This is from wider research - particularly from EIS funds themselves (and conscious this may present a rosier view than reality). Syndicate room's access fund memorandum provides some good information. I haven't got my own failure percentages yet and won't expect to know this for years (as expect the average investment period to be about 7 years, but some could be far longer). I've made about 140 individual investments over 4 years via 7 different funds/fund rounds. So far I've only had 1 exit and 3 failures although I think sometimes fund providers are pretty slow to update individual company progress, so perhaps there have been some more results I am unaware of. One thing I think potential investors should be particularly wary of is the "expected returns or IRRs" provided by firms selling these funds/products. In my opinion these are grossly exaggerated/optimistic. I think its reasonable to assume that in a free market, returns won't massively exceed the broader public equity market, but may be 2-3% higher per annum (including income tax benefits, but perhaps not CGT benefits as these are a secondary benefit) due to the illiquidity premium and general additional premium for the faf and additional paperwork of it all. Even in the non-EIS fund literature, e.g. British business bank, gov.uk information, I think it is worth assessing the figures with a pinch of salt due the survivorship bias in the data. I'd make the same criticism of hedge fund data.
@Money Unshackled brother a serious suggestion. Why don't you do a fun collaboration video with fellow UK investing you tubers like MAMA FURFUR OR PENSION CRAFT. Would love to see a crossover
I was looking into in crowdfund Monzo but I am waiting first because they just reported a big loss, now we need to see if the new chief executive can turn the things around starting with the new £5 a month card which gives 1% interest a year, but I am not too convinced about this card because people would make minimum £40 loss a year because the 1% interest is up to £2,000 holding in that account. It is too early to tell. I haven't had the chance to research crowdfunding thoroughly. I am trying to do 1 step at the time to make sure I do the things right
Crowd funding seems like an interesting subject, but what I really want to know is: What are your thoughts on the "Velocity Banking" teaching, where these financial gurus explain the difference between "Simple" interest, and "Amortized" interest on mortgage loans? Normal home mortgages are amortized interest loans, where when making mortgage payments a large % of the payment goes to pay the interest and a small amount towards the principal. Even though the Amortized interest may be 2% on thr loan, that is still a lot more expensive than a 12% "Simple" interest charged on credit card balances. To find the Simple interest equivalent of an Amortized interest percentage, you multiply by 20 the Amortized interest rate. That will give you the simple interest equivalent. So the equivalet value of a 2% Amortized mortgage loan, ×20 = 40% Simple interest rate. So they say it is cheaper to max out your credit card and put that money towards the principle. Make principle only payments with that money, and then pay the 12% simple interest rate,credit card debt. What are your thoughts on this teaching / technique? ruclips.net/video/HoUiECFh1iA/видео.html
Bought into MoneyBox recently through CrowdCube. Loved the platform! I didn't throw in a lot but thought that since I use their LISA for home deposit savings it'd be a great business to support.
The US will have crowdfunding opportunities but not sure if these platforms allow US investors. It will probably say somewhere if you look. Thanks, Andy
Adrian Miles - Great question. They seem similar in concept. I think the advantage is that you would get paid monthly from the rent, and the disadvantage would be your investment is locked in for a set term (e.g. 5 years).
@Money Unshackled brother a serious suggestion. Why don't you do a fun collaboration video with fellow UK investing you tubers like MAMA FURFUR OR PENSION CRAFT. Would love to see a crossover
Hey guys! Hope all is well! I’ve recently just came into £10k inheritance and want to invest! I’ve been watching your videos as much as i can but learning the process is slow as you guys must know, is there any investments you guys would recommend as I feel it would do better in the market instead of sat there in the bank? Would really appreciate the guidance
I like how you explain everything in detail and not assume we all know the meaning of investment vocabulary. Some of us are very new at investing and we need a little extra help.
Hi, if company x eventually goes IPO and becomes public, do the shares I own on the crowed-funding platform transfer to the stock exchange?
Yes they get transferred to the stock exchange and you can have them transferred to your brokerage account. That is what happen to me with Trust Stamp which I invested in through SeedInvest.
Yes
Great video! It's really convenient that you guys have done this video!I follow your channel and have done for a long time and have just last week signed up to CrowdCube as an investor. I haven't invested yet but will update you as I know more. Cheers Andy & Ben 👍
Thanks for watching. Yes please. Would love to know what you do and why. Keep us posted.
Thanks, Andy
hi guys thanks for sharing this video,
So you know roughly when you will do the part 2 of crowdfunding based on your experience?
My dad lost both of his crowdfunding investments so I've been completely put off it!
That's unfortunate. I think the lesson in that case is that 2 investments is not enough diversification - not that crowdfunding is a bad investment in itself.
Thanks, Andy
@@MoneyUnshackled he'd only put about £300 in each, so not a huge loss but 100% failure rate lol
Most people don't make money from crowdfunding businesses since most new businesses fail
Naomi, did you watch the video yet? The research suggests that most crowdfunding businesses don't fail.
Thanks, Andy
@@MoneyUnshackled yes I did watch the video and was disappointed that you are misleading people.
The title alone is concerning since pretty much no one has got rich investing in a company on a crowd funding site.
Then there was the comparison you made of how many businesses on Seedrs go bust compared to the average for start-ups after 3 years. Many of the companies on Seedrs have been around longer than 3 years so it's not exactly a fair comparison. By saying only 21% of companies listed on Seedrs go bust you make it seem like it's a safe investment.
And then there was the statistic on the average internal rate of return. You made it seem like you are more likely to make more money investing in a Seedrs company than a FTSE company.
In reality the Seedrs website clearly states that you are more likely to lose all of your invested capital than see a return or make a profit. And that it's very unlikely you will be able to sell your shares on the secondary market.
I just think this video overall is misleading and irresponsible.
Hey guys, can you do a video on crowdfunding for property?
Hey how did you guys put this video together? Thank you in advance.
Congratulations on quitting the day job guys! You are doing a great job here
Cheers mate. The real work starts now.
Thanks, Andy
A. Going to start this week
I need clarity regarding Equity crowdfunding investments and profit taking.
1)Scenario A: I purchased 100 shares at $7million valuation in 2019 on a startup company. Similarly in 2020, I purchased again on the same startup company with a valuation of $12 million at 2000 shares.
Now in 2021, the company got acquired. At a value of $3 billion. I intend to take profits. What’s the amount of my profits? Kindly let me have an input to this pls.
:-) MOST HILARIOUS writing, punchy sarcasm
I have recently invested £100 in Moneybox via crowdcube, I found the process easy enough although as mentioned I registered in July and the money was deducted in August. I am now waiting for my shares certificate. I would be great to hear your thoughts on moneybox as I have started using it and find it very intuitive but fear the charges may be quite high. Thanks
was the investment successful?
Seedrs are merging with Crowdcube? So, secondary sales pitch maybe possible on both? I think Crowdcube do offer this now.
The merger plans have been terminated after concerns by UK regulator.
How do I get croud funding
I’ve made quite a lot of SEIS/EIS investments over the last 4 years. I think in reality the failure rate is a lot higher than 1 in 5 (more like 50% for EIS and 85% for SEIS qualifying investments.
Returns with an IRR of >10% (before tax benefits) are possible but are totally driven by a very small amount (about 5%) of the hyper successful companies which generate 10x + returns. Shame these aren’t easy to pick amongst the ones destined for failure!
Also failure isn’t necessarily bankruptcy. Some investments never materialise to more than an OK salary for the founders, with no real opportunity to exit the investment than to simply write it off and claim loss relief or offer it to the founders at a discount.
Some really interesting points here especially around reasons for failure. Are the failure percentages just based on your personal investments or wider research?
Thanks, Andy
@@MoneyUnshackled Hi Andy, great to get a response from you and thanks for the regular videos you post. This is from wider research - particularly from EIS funds themselves (and conscious this may present a rosier view than reality). Syndicate room's access fund memorandum provides some good information. I haven't got my own failure percentages yet and won't expect to know this for years (as expect the average investment period to be about 7 years, but some could be far longer). I've made about 140 individual investments over 4 years via 7 different funds/fund rounds. So far I've only had 1 exit and 3 failures although I think sometimes fund providers are pretty slow to update individual company progress, so perhaps there have been some more results I am unaware of.
One thing I think potential investors should be particularly wary of is the "expected returns or IRRs" provided by firms selling these funds/products. In my opinion these are grossly exaggerated/optimistic. I think its reasonable to assume that in a free market, returns won't massively exceed the broader public equity market, but may be 2-3% higher per annum (including income tax benefits, but perhaps not CGT benefits as these are a secondary benefit) due to the illiquidity premium and general additional premium for the faf and additional paperwork of it all.
Even in the non-EIS fund literature, e.g. British business bank, gov.uk information, I think it is worth assessing the figures with a pinch of salt due the survivorship bias in the data. I'd make the same criticism of hedge fund data.
Thanks , I've never heard of this!
Worth at least checking this out a little. I will be.
Thanks, Andy
@Money Unshackled brother a serious suggestion. Why don't you do a fun collaboration video with fellow UK investing you tubers like MAMA FURFUR OR PENSION CRAFT. Would love to see a crossover
I was looking into in crowdfund Monzo but I am waiting first because they just reported a big loss, now we need to see if the new chief executive can turn the things around starting with the new £5 a month card which gives 1% interest a year, but I am not too convinced about this card because people would make minimum £40 loss a year because the 1% interest is up to £2,000 holding in that account. It is too early to tell. I haven't had the chance to research crowdfunding thoroughly. I am trying to do 1 step at the time to make sure I do the things right
Crowd funding seems like an interesting subject, but what I really want to know is:
What are your thoughts on the "Velocity Banking" teaching, where these financial gurus explain the difference between "Simple" interest, and "Amortized" interest on mortgage loans?
Normal home mortgages are amortized interest loans, where when making mortgage payments a large % of the payment goes to pay the interest and a small amount towards the principal.
Even though the Amortized interest may be 2% on thr loan, that is still a lot more expensive than a 12% "Simple" interest charged on credit card balances.
To find the Simple interest equivalent of an Amortized interest percentage, you multiply by 20 the Amortized interest rate.
That will give you the simple interest equivalent.
So the equivalet value of a 2% Amortized mortgage loan, ×20 = 40% Simple interest rate.
So they say it is cheaper to max out your credit card and put that money towards the principle.
Make principle only payments with that money, and then pay the 12% simple interest rate,credit card debt.
What are your thoughts on this teaching / technique?
ruclips.net/video/HoUiECFh1iA/видео.html
was the investment successful?
What about Start Engine?
Bought into MoneyBox recently through CrowdCube. Loved the platform! I didn't throw in a lot but thought that since I use their LISA for home deposit savings it'd be a great business to support.
Black Antarctica same here plus they have private equity investment too so in my view it’s less of a risk
That deep Northern accent is hilariious...Moahney...Stohrtaps
Some are EIS eligible
Just one year later and there are now concerns Monzo will no longer be viable as a 'going concern'.
alot of the pitches are convertible what's the difference is equity not better
Does this apply to the United States too?
The US will have crowdfunding opportunities but not sure if these platforms allow US investors. It will probably say somewhere if you look.
Thanks, Andy
I saw someone on Reddit mention “property crowdfunding” today. Have you guys ever looked into that?
What would the benefits be over a REIT?
Adrian Miles - Great question. They seem similar in concept. I think the advantage is that you would get paid monthly from the rent, and the disadvantage would be your investment is locked in for a set term (e.g. 5 years).
@Money Unshackled brother a serious suggestion. Why don't you do a fun collaboration video with fellow UK investing you tubers like MAMA FURFUR OR PENSION CRAFT. Would love to see a crossover
Hey guys! Hope all is well! I’ve recently just came into £10k inheritance and want to invest! I’ve been watching your videos as much as i can but learning the process is slow as you guys must know, is there any investments you guys would recommend as I feel it would do better in the market instead of sat there in the bank? Would really appreciate the guidance
Hi, we did a video recently called how to invest £10,000, search our channel for it! Was only in the last few weeks. Ben
Thank you
Check out Yielders!
thanks
Wish you'd enable messages and actually respond to tweets on twitter.
Ask us anything here! We don't really use Twitter in that way. We're very active on RUclips comments. Ben
Love
🙌🏽🙌🏽🙌🏽
I wish I had looked into it when I saw this video. Shame on me.
THIS tm will be the next beyond meat!
Come on boys don't talk about something that you have not done! You lost a sub in the 1st 0:41 of your video!
It was a research video dude with the intention of doing it. If you don't wanna stick around, then you will not be missed.
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