Curve crowdfunding

chamelion

Hi folks,

Surprised that I can't find any discussions on the curve card crowdfunding initiative? Is anyone planning on putting in some money next Tuesday and getting some swag / metal card and benefits?

Quite tempted but more worried I'd be kissing my investment goodbye unless they go to ipo or sell. Otherwise, money just held indefinitely?

Any thoughts?

DrSyn

Why put anything in something that has only just come out?

1. Why do they need to do it by crowdfunding at all?

2. What happens when the money raised runs out?

3. Things may go wrong with this new app, it may not have been fully tested.

4. Having one card to rule them all, makes it a more tempting target for the hackers.

5. Having one card to rule them all, means that if they get hacked, there is a higher chance of losing more money, than with a normal card.

6. How easy will it be to get money back from your bank if its lost l while using this card?

masonic

Companies only generally try to raise money from individual consumers if they are desperate for cash and can't convince anyone else to invest.

chamelion

masonic wrote: »

Companies only generally try to raise money from individual consumers if they are desperate for cash and can't convince anyone else to invest.

£70M in funding and 1/4 billion valuation. This isn't a mom and pop shop

masonic

chamelion wrote: »

£70M in funding and 1/4 billion valuation. This isn't a mom and pop shop

You seem to have misunderstood my comment. I suggested they were probably desperate for cash, couldn't obtain investment from normal channels (without giving away too much equity) and therefore had to resort to raising money from individual consumers who are not sufficiently knowledgeable to properly assess the offering. Companies who burn through cash and are unattractive to professional investors can be large or small, as can the amount of money they are able to raise from unsuspecting punters.

In this case they are claiming small company exemptions from reporting and auditing their financial statements, so that's suggestive of a turnover of less than £10m. I wonder what net profit or loss resulted from that turnover? Someone considering investing in the business would certainly want to know.

Edit: and doesn't raising £70m of funding on a valuation of £250m mean that they are giving nearly 30% of their company away? What happens when that money runs out?

DrSyn

chamelion wrote: »

£70M in funding and 1/4 billion valuation. This isn't a mom and pop shop

Same question.

Why do they need to crowdfund at all?

If they where such a good bet, what is deterring the professional investors?

Alexland

chamelion wrote: »

£70M in funding and 1/4 billion valuation. This isn't a mom and pop shop

They seem to be targeting the newbie investor who would be impressed and reassured by that high valuation. However to be fair to them they are only seeking £1m via crowdfunding so it's more of a marketing and customer loyalty gimmick than a serious investment proposition.

Thrugelmir

chamelion wrote: »

Any thoughts?

Marketing ploy to build customer loyalty. As a shareholder you'll be more inclined to maximise the card usage and tell your friends.

Danger is you'll likely to be diluted further as the company raises further funds. Obviously needs to build futher scale to warrant an IPO or trade sale.

chamelion

Very useful insights! Agree with the building customer loyalty part - I've been on curve since beta, absolutely love it, and was definitely thinking of putting some money down to own a part of it and get a metal card. But, I'm dubious now...

Jonbvn

chamelion wrote: »

But, I'm dubious now...

Being sceptical of all "investment opportunities" should be your default setting. :money:

Alexland

chamelion wrote: »

was definitely thinking of putting some money down to own a part of it and get a metal card.

If say 1 in 20 of their 500,000 customers invests then 25,000 punters investing £1m is only £40 each. Curve will then release some more marketing puff about it being oversubscribed and a fantastic success. I haven't seen them say that these investors will get a metal card for which they would normally charge £14.99 pm / £150 pa. If you really want to get involved and it adds a bit of excitement to your life for a few months then I don't see the harm of risking between £10 to £50.

Alex