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@ThomasSEEDRS
Hi All!
For all you Man City fans, we chose 8pm as by then you will already be 2-0 down, and will need distracting from the pain....what better way to invest in David's company!
We have been loving this thread over the past 24 hours or so, and realise there are a lot of questions about the Seedrs process. Hopefully the following bullet points will clear some of them up. Unfortunately we are pretty busy here so will not be able to continually answer further questions after this post, but most answers can be found on our site:
We use Experian, a 3rd party provider, to do all of our compulsory KYC checks, and they were unfortunately having technical difficulties which delayed the process a little. The back log should be sorted now. If not then please send us a support ticket on our site and we will try and sort it out asap.
We hold the shares as nominee on behalf of the investors. When an investors invests in a business, they will electronically agree to an Investment and Nominee Agreement, pursuant to which the investor delegate its power to vote to Seedrs. We will take most of the votes on behalf of the investors, unless it is something that we feel needs the consensus of the investors (such as a sale of the company), in which case we would ask the investors. This is good for the entrepreneur as they don't have to keep reaching out to potentially hundred's of investors, but can simply ask Seedrs who can quickly make a decision. This is efficiency at work. Remember, Seedrs makes money by taking 7.5% of any profit that an investors makes (if you make a loss, you don't pay us anything), and therefore our interests, and the vote we take, are firmly aligned with the investors.
There are some incredible tax benefits by investing in a company such as David's, and loads of information on this can be found here: http://blog.seedrs.com/2012/06/18/getting-to-grips-with-seed-eis-2/
Tax is boring, but in a nutshell, if you invest £1000 into David's company, then you will receive £500 back through tax break so you are actually only investing £500. This is the same regardless of what tax bracket you happen to be in and how much you invest. A lower rate tax payer who invests £10, can claim back £5 off their income tax bill. It's pretty cool.
If we go bust, we are contractually obliged to either find a suitable alternative nominee, or distribute the shares directly to you. In no event will you ever lose your investment if we are no longer around.
If you don't invest £1000 into a portfolio of companies, we may close your account, but your investment in David's company will stand and we will continue to hold that as nominee.
I really hope that helps, and we think it is absolutely fantastic that you are supporting David's venture. We plaster our site with banners saying how risky it is to invest in a startup business. And I re-iterate that here: this is high risk stuff. But there are many, many benefits from investing in a business such as David's, and I am glad to see you all supporting him.
All the best!
Tom