Microcosm - 2nd Seedrs crowd-funding round

Anyone had trouble /expereienced delays getting the money into your Seedrs account?

Anyone remember how long it took last time? I'm sure it was pretty quick/ an hour at tops.

Edit - scrub that funds are there - was only able to see them once I clicked on the invest button - but not in my account page. Not to worry.

I was also going to say, you can invest and put the money in later as well. But they only extend a small amount of credit in that scenario, and you have a time limit on how long it takes you to put the money in.

I've topped up my massive £50 initial investment with £10.43. There's a spare tenner in my Seedrs account that you can have on Thursday as well.

#playingwiththebigboys

Yeah, I've 'invested' some money but haven't deposited it yet. You get 48 hours to make the deposit.

I could only invest my pre-arranged amount to avoid dilution, Seedrs wouldn't let me give you moar moneyz...
#clarification

I've topped up my massive £50 initial investment with £10.43. There's a spare tenner in my Seedrs account that you can have on Thursday as well.

#playingwiththebigboys

I've done the same.

DK, I see this is represented as a new investment page/entity on Seedrs. So I have a stake in Microcosm 1st round and Microcosm 2nd round. So I'm assuming these are then effecitvely combined into one investment in Microcosm as a company?

Sorry if this is a stupid questions/makes no sense!

Why does my dilution avoidance amount appear to be less than that of David Dansky having made the same initial investment?

I could only invest my pre-arranged amount to avoid dilution, Seedrs wouldn't let me give you moar moneyz...
#clarification

That is what I believed the case to be.

Good to have it confirmed.

This next 48hrs = Maintain your %.
After 9:30am Thursday = Increase your %.

Morning all - it's worth noting that you can only have one pending deposit, so if you intend to take up your pre-emption rights AND then invest when it goes public on Thursday, you should make sure you've covered your first payment. A bank transfer tends to be much, much faster than using GoCardless. Given that this round seems likely to go pretty quickly, I'd suggest the former.

I think there was a glitch this morning which potentially could have allowed you to over-invest. It's now been fixed.

Update - as a result of the bug this morning (which has now been resolved), two individuals were allowed to invest more than their permitted amounts. Their investments will be cancelled and they will have the opportunity to re-invest the correct sums.

Why does my dilution avoidance amount appear to be less than that of David Dansky having made the same initial investment?

You're spot on that the amount should have been identical, assumption I have is that David Dansky slid the slider inaccurately and this happened at the same time that the bug that Frank mentioned that permitted over-investment occurred.

It shouldn't have been possible.

Seedrs are currently making corrections to over-investment or non-preemptive investment.

David is one of the people being notified of that error and having the transaction reversed.

My apologies to those to whom this has happened to, it's not ideal but you do have today and tomorrow to do exercise the preemption rights so there's no rush in this phase.

For now you can just calmly exercise the options and Seedrs are obviously ironing out the kinks they've encountered.

The real rush is Thursday morning for the public bit, especially as once it gets some traction.

I've topped up my massive £50 initial investment with £10.43. There's a spare tenner in my Seedrs account that you can have on Thursday as well.

#playingwiththebigboys

I'm getting this too, why can't I put anymore than £10.43 in?

is this maxed to avoid dilution then?

Morning all - it's worth noting that you can only have one pending deposit,

Are you sure? I have two pending deposits - one from yesterday and one from today.

This next 48hrs = Maintain your %.
After 9:30am Thursday = Increase your %.

^^

I'm getting this too, why can't I put anymore than £10.43 in?

is this maxed to avoid dilution then?

Because if you put in £100k you'd deny other existing investors their preemption rights.

To prevent this, and to make it fair, the period in which you can exercise your preemption rights only allows investment up to the maximum that preserves your current %.

You can only increase your % in the public phase of investment, which starts on Thursday morning.

Effectively, you have to invest as 2 transactions: 1 to preserve and 1 to increase. Though you only need a single bank transfer to Seedrs for the sum of both values.

Of course, you could just do both at once on Thursday, but that's a risky game as if it goes too quickly, or you forget for a few hours (the reason many people missed out last time), then the entire round might be done and you'll have missed both opportunities.

Ok - if I currently have a 0.5% stake, can anyone tell me what this will become after dilution if I choose NOT to avoid dilution....

Anyone? Frank ?

The maths is making my head hurt

And this, boys and girls, is why you should pay attention in mathematics class.

;)

thanks, for some reason I got it into my head that to preserve I'd have had to put the same in again.. which I thought was a bit strange

Is this the first time Seedrs has done two rounds of funding on one company? If so, bar the little glitch, it all went relatively smoothly.

They've done 2nd rounds before.

Anyone? Frank ?

The maths is making my head hurt

I'm pretty sure Seedrs have a spreadsheet to help answer such things.

It would certainly be easier than my explaining option pools, and how shares not yet issued are still counted as if they were, and how in reality you guys actually hold more than 10% today, but once the option shares are allocated and vested by employees (over the next 4 years) the maths all balances out.

Seriously, I'll just let Frank or Thomas answer the question of "If I have n% today and don't maintain my position, by how much will my n% be reduced?".

thanks, for some reason I got it into my head that to preserve I'd have had to put the same in again.. which I thought was a bit strange

No, it's much less than that. You should have received an email telling you the exact amount, and if you go onto Seedrs and try to invest it will tell you the amount you can invest now.

They've done 2nd rounds before.

They've even done a 3-round one.

Incidentally, I bunged a tenner in the Million Pound Startup because it looked fun: they're a long, long, long way off getting funded, aren't they. Shame.

Incidentally, I bunged a tenner in the Million Pound Startup because it looked fun: they're a long, long, long way off getting funded, aren't they. Shame.

Incidentally we entered that, mostly because entering doesn't mean we have to sign on the dotted line at the end, and not entering certainly means we can't.

I think both companies and investors have reasons to be concerned about the Million Pound Startup, and it all boils down to this: "Who is picking the winner?".

As an investor, you'd put your money in MPS if you believed that the people selecting the winner were smarter than you, experienced, with great foresight.

As a company, you'd want to win the MPS if you believed that it ultimately improved your chances overall. The money by itself is important but not as critical as people imagine, at that level (effectively a decent sized Series A) you're looking for what the investor brings to the table in non-money terms. Such as opening doors to customers or partnerships, future investment possibilities, experience and guidance, etc.

The big unanswered question is whether those selecting the winner know what they're doing, and if so... will they still be around later on to help support the winner in realising the identified potential.

We entered because whilst that question remains unanswered there's a chance that it might be answered in a great way.

PS: Seedrs are probably now reading this with interest. Or should be.

Are you sure? I have two pending deposits - one from yesterday and one from today.

This concerns me. In the first funding round Seedrs had issues around receiving and allocating the money efficiently. They allow 48 hours for the funds to be added - but there is only 48 hours before it goes live to the public and they note that it can take 2 or three days for the funds to arrive.

It sounds to me as though this rule about only allowing one investment while waiting for the funds to arrive could block some existing investors from accessing the public round.

Incidentally we entered that, mostly because entering doesn't mean we have to sign on the dotted line at the end, and not entering certainly means we can't.

I think both companies and investors have reasons to be concerned about the Million Pound Startup, and it all boils down to this: "Who is picking the winner?".

As an investor, you'd put your money in MPS if you believed that the people selecting the winner were smarter than you, experienced, with great foresight.

As a company, you'd want to win the MPS if you believed that it ultimately improved your chances overall. The money by itself is important but not as critical as people imagine, at that level (effectively a decent sized Series A) you're looking for what the investor brings to the table in non-money terms. Such as opening doors to customers or partnerships, future investment possibilities, experience and guidance, etc.

The big unanswered question is whether those selecting the winner know what they're doing, and if so... will they still be around later on to help support the winner in realising the identified potential.

We entered because whilst that question remains unanswered there's a chance that it might be answered in a great way.

PS: Seedrs are probably now reading this with interest. Or should be.

This was my thought exactly. But because it's an innovative approach, and quite fun, I thought I'd put a tenner in. Just out of curiosity and to follow the process, really.