Startup investing

badger09

bowlhead99 wrote: »

In case it is of use for people looking into crowdfunding for the first time, I have used my train journey home to come up with a basic 'article' as requested by Nardge in relation to crowdfunding / startup investments.
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:T

@ Crabman, Westie983, fermi, Nile, redfox

May I suggest this excellent post from bowlhead99 is made a 'stickie'

I know most newbies don't read them, but at least we can point them towards it.

@ bowlhead99 - Freudian slip in misspelling other forum user's name;)

Nardge

Nardge wrote: »

In light of the above useful and pertinent comments, I conclude matters thus:

Avoid 'Crowdfunding' unless:

- You are very wealthy
- It is a hobby that is perceived as spending (unless very lucky)
- You spread the risk in a fund that invests in many startups, and remain aware of the large expense involved.

The previous query was to see whether investing in large firms changed peoples' take on the matter. It seems not.

Thank you bosteronerimus for your wishes regarding my Chip Investment!
Fingers crossed I'll get something worthwhile back.

I think that'll be it with me and Crowdfunding though.
I'll stick with 'Innovative Finance' and 'Stocks and Shares' where the risks are considerably less...

This thread has been very helpful, thanks all for your contributions.

With Kind Regards

Thank you Eskbanker and Bowlhead99 for your thoughts, and Bowlhead99 for your erudite piece. It very much represents what I would have liked to have seen written as an MSE piece, with this thread as it's allied 'discussion forum'. Whilst this is MSE, it was inevitable that one day the topic of Crowdfunding would manifest, and that the position of comments from the MSE demographic would differ, hence my suggestion for the above as has been the case with 'Which?'. The objective has been achieved, albeit in a roundabout way. If not as an MSE piece, as a 'stickie' it would serve it's purpose in warning people off in the manner so desired.

As you will see from my above comment (found a little earlier) in this thread, I was already aware of all the dangers involved, however the fact that I'd invested in Chip (for better or worse) was irrevocable. I actually posted the link to this very thread on the Chip Forum a few months ago, thinking it might temper the appetites of any that might get overexcited vis-à-vis Crowdfunding in general.

Evidently, when I saw the discussion Chameleon was able to generate with regards to Curve, I thought something similar might be generated for Chip on my below thread, as Chip have had a Series B this weekend. I'd still very much welcome being informed where I can see Profit/Loss/Turnover for the same and other firms, if only for general knowledge. Any other chit chat would also be useful.

https://forums.moneysavingexpert.com/discussion/6047673/chip-financial-ltd-crowdfunding

As detailed from the start of this thread, my investment in Chip became fact long ago..
However, I didn't subsequently go on and donate/speculate/gamble with countless other companies!

Admittedly I'll be grateful if a discussion of Chip on my MSE thread can be had. If on the other hand it cannot, I can peruse and ask both the Chip Forum and Crowdcube message boards where to access the requested information. Many of the highly financially literate and articulate people you describe can be found in situ there, and whilst it Chip may indeed all flop, right now it appears that all is moving in a favourable direction. Maybe I got lucky. Time will say. Right now I must decide whether to take a further 'punt' and avoid dilution lest they defy the odds.

With Kind Regards

bowlhead99

Nardge wrote: »

Evidently, when I saw the discussion Chameleon was able to generate with regards to Curve, I thought similar might be generated for Chip on my thread, as Chip have had a Series B this weekend. I would still very much welcome being informed where I can see Profit/Loss/Turnover for the same and other firms, if only for general knowledge.

You can see published financial statements for UK incorporated companies on the Companies House website. (http://beta.companieshouse.gov.uk). Other countries have their own equivalent companies registries but may not compel companies to release their accounts to the general public. For the UK, the level of information that needs to be put into the public domain is limited and depends on the size of the company, and companies have 9 months to file after the end of their financial year.

You mention 'and other firms'; if the companies are listed on a stock exchange, they will have greater transparency requirements and invariably have an investor relations page on their own website setting out their periodic financial reports.

If a discussion of Chip on my MSE thread can be had, I'll be grateful. If on the other hand it cannot, admittedly I can ask the Chip Forum where to access the necessary information.

There's no harm creating the occasional thread to discuss particular companies, which does happen from time to time, and I'm sure people will contribute to your thread if they have something that they think needs saying.

However this is a generalist savings and investment forum and so most people won't be interested in the prospects of a follow-on investment in Chip as an investment opportunity, as most of them won't have invested first time around, and so the chance to invest more won't be available to them anyway.

When particular crowdfunding investments are mentioned on this forum (rather than talking just in general terms about early stage investments), the responses are usually mixed. There are generally some people who warn against it, some who say they can't see the attraction, some who say they like the product but don't find the valuation compelling, or don't have enough information to properly make a decision, and that it's really more about buying something you like with your heart rather than making a proper investment case with your head. While some say they like it and will be investing (or that they know it is a complete gamble but fancy having a go anyway). That's the sort of thing that happened on the Curve thread and most others.

You can predict that those will be the sort of range of responses you'll get, even before starting the thread, and so there is not much to really 'learn' by actually starting the thread. As the number of people interested in participating in a Chip funding round is very low in comparison to the total number of people on the forum, you may not get much response, and if you do get some that agree with you, it doesn't mean it's the right thing to do, because it might just be an unbalanced view - e.g. simply because the people with opposing views didn't bother showing up.

If there is already an active web community for people interested in making further investments in Chip, that would seem to be a better place to put your enquiries than here, as a greater proportion of people there would be familiar with the details. Of course, beware of 'confirmation bias' among like-minded individuals.