Microcosm - 2nd Seedrs crowd-funding round

So if I invested £50 last time, top up with £10.43 and put in another £30, I claim SEIS relief on all those figures in the first tax return after those forms are done?

Piffling ammounts, I know, but would still like to claim relief if its straightforward.

SEIS is claimed on a round-by-round basis. You'll have to do one form SEIS3 for your first round investment, and another for your second round investment of £40.43 (note this amount will have to be a multiple of £1.49 so that you get whole shares).

So it'll be two separate claims for all investors who take part in both rounds. But it's worth noting that if you don't claim the up-front tax relief under SEIS, you won't be take advantage of the even more exciting (for tax fans) back-loaded potential advantages (like not having to pay any capital gains tax if you make money on your shares - see here for the full details). It probably means filling in a tax return, but I'm definitely doing it, even for my smallest investments!

We will help the Microcosm team work through the certification procedure which will lead to individual investors actually being able to claim the relief. But it's hard to predict exactly when the forms will appear - as it depends on the 70% spent/4 months trading requirement being hurdled first.

I recall it was mentioned earlier, but to clarify, once it goes live to the public, you can buy and then transfer the funds in to pay for the shares? Assuming that you are already set up as an investor?

Yes.

Once it goes live, you can put yourself down as an investor and then transfer the funds afterwards.

But... you need to be registered/setup as an investor. And that includes the questionnaire, etc. So you should do that bit in advance.

frank - I have emailed the team directly too but I will be on holiday for the period noted.. Any way I can exercise my pre-emption rights in abstentia?

Thanks

Frank - I invested in the first round, missed the cut off and so the amoutn was then re-funded. I'm presuming that means I have to wait until the public "release" before I can get going again?

Frank - I invested in the first round, missed the cut off and so the amoutn was then re-funded. I'm presuming that means I have to wait until the public "release" before I can get going again?

I can answer that one... yes.

But it should be noted, existing investors who want to increase holdings also have to wait until the public bit to do that. THe pre-emptive period is solely for existing investors to preserve their current position.

Hi Arvy

That "chap" is me, the Investment Director at Seedrs. And I think it reflects quite well actually...considering I'm on holiday and yet still sending out preemption notices :)

If anyone has any questions about the process please email me directly on Thomas.davies@seedrs.com. But note that I may not get back to you until I return from holiday at the weekend.

Best wishes

Thomas Davies
Investment Director
Seedrs

Woah! Money men invasion!
sells family silver, gives it all to VB

Hi Arvy

That "chap" is me, the Investment Director at Seedrs. And I think it reflects quite well actually...considering I'm on holiday and yet still sending out preemption notices :)

If anyone has any questions about the process please email me directly on Thomas.davies@seedrs.com. But note that I may not get back to you until I return from holiday at the weekend.

Best wishes

Thomas Davies
Investment Director
Seedrs

Thomas

I've sent you an email. I'm not 12 and therefore not a fan of emoticons.

You sound a right laugh arvy.

I'm not 12 and therefore not a fan of emoticons.
:(

;)

What's the emoticon for "grumpy sod"?

:|

:|

Investing in bike website is serious business. Stop doing emoticon.

Hi Thomas / David

As a previous investor I received the e-mail about investing further to avoid share dilution.

The answer to this may be obvious but the figure given to avoid share dilution is low - around 20 percent of the initial investment.

Can anyone illustrate how this works? I'df kind of anticipated having to invest the same amount or more to avoid dilution?

Investing in bike website is serious business. Stop doing emoticon.

:(

arvy is just jealous because before emoticons were invented he was the world's only real-life emoticon.

Hi Thomas / David

As a previous investor I received the e-mail about investing further to avoid share dilution.

The answer to this may be obvious but the figure given to avoid share dilution is low - around 20 percent of the initial investment.

Can anyone illustrate how this works? I'df kind of anticipated having to invest the same amount or more to avoid dilution?

The Microcosm first round offer was 10% for £50,000.

This second round is for a further 5% (for £100k), which would - without pre-emption rights being taken up - dilute all shareholders.

The total number of shares in the entire company increases so that shares totalling 5% of the company can be issued to the new investors.

So the stake owned by a first round investor reduces in terms of the overall proportion of shares in the entire company. But only by a very small amount, because the dilution effects all shareholders.

Consequently, in order to keep at the same % ownership as after the first round, you need only invest a small proportion of your initial investment.

Initial investors will have 48 hours to use their pre-emption rights. Once that period has elapsed, the offer is open to everyone.

There's an example with numbers here.

You sound a right laugh arvy.

:(

;)

What's the emoticon for "grumpy sod"?

:|

Investing in bike website is serious business. Stop doing emoticon.

arvy is just jealous because before emoticons were invented he was the world's only real-life emoticon.

Nice. All of you.

I'm sorry.

:(

^ :-d

Nothing meant by it, Arvy. Your post was just comically grumpy.

;)