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Tom from Seedrs is going to be on this thread very shortly
Hi Tom.
Couple of questions about Seedrs:
You hold investors' shares as a bare trustee. What does that mean if Seedrs were to fail as a company? How are we protected if Seedrs files for bankruptcy?
What happens if there is a vote or voluntary corporate action relating to the shares? Do you take instruction from us and act accordingly, or do you vote on our behalf without reference to us?
I note that some Seedrs staff invest in your startups. Presumably Seedrs insiders will refrain from investing if it looks like an offer may be oversubscribed so as to avoid any conflicts?
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it was explained further up thread, they're processed once a day either early morning or late evening.
right, and i read that - but that was a second hand report, and i thought maybe someone who actually works for seedrs could explain this in more detail and also if they're doing anything to change it, as it seems (to me at least) that it's an extremely foolish way of doing it.
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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
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right, and i read that - but that was a second hand report, and i thought maybe someone who actually works for seedrs could explain this in more detail and also if they're doing anything to change it, as it seems (to me at least) that it's an extremely foolish way of doing it.
perhaps i should clarify that a little bit: it seems particularly foolish to keep people waiting for their own money if it's going to prevent them from investing.
however, i also asked the same thing of seedrs and got the following reply from jeff:
Deposits usually take 24 hours to clear through our system, sometimes slightly longer (not quite forever, but I appreciate it's not instantaneous either!). But you can go ahead and invest without the funds being in your account -- make the investment, and as long as the funds clear within seven days, the investment will go through.
I hope that helps, but please let me know if you have any other questions.
Kind regards,
Jeff Lynnso, i hope that helps people who are currently having difficulties in transferring money over. unfortunately, i guess it's not much good if you're not allowed to invest yet due to failing their questionnaire and awaiting further checks. but i think it will help people who are having difficulty with the driving license/national insurance/other ID step (oliver schick?)
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Might do, but Jeff has been keeping me updated, so all is well.
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My financial advisors have recommended I should get involved
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What's seedrs' record for fastest ever funding?
It is measured in days... 6 I think.
Oh, and is one of you involved in this: http://trotify.com/
It puts our page to shame... that's a great video though.
Michael
d0cA
HatBeard
MatchkeY
Sparky
ThomasSEEDRS
Brave
mashton
Ramsaye
Oliver Schick
scherrit
skydancer
hippy
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Crowdfunding the creation of the next version of LFGSS
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Could you wait until half-time at least - the football starts at 7:45 ;-)