The fun of crowdfunding

crowd_3

I’m wondering if you’ve used crowdfunding. If you have- then I wonder if you could drop me a line at henry@agewage.com and spare me ten minutes of your experience.

It looks likely that AgeWage will be raising quite a lot of money next month using one of the big crowdfunding platforms and we’re building a marketing plan. Not being a regular investor , I’ve had to learn for the first time what makes for a successful campaign.

So we’ll be doing a semi-pro video (thanks to all the help and encouragement from Mark and Jo at Quietroom.

And we’ll be completing our Investor’s Memorandum and submitting it to the scrutiny of the equity analysts.

Oh and we’ll be doing all the things that you need to do with HMRC to make sure our investors max out the tax breaks you get by investing through an EIS.

But the bit that fills me with trepidation is getting us off to a head start. There are just so many projects that compete for the eyeballs and wallets of investors and most of them involve sexy things like fitness, sex  and beer. Working out how to promote pension consolidation is going to be a challenge!


But we a noble forebear!

I’m sure I’m not the first 57 year old who turns up to the crowdfunders in a tweed jacket. A couple of years back, Daniel Godfrey so nearly got the People’s Trust over the line

Speaking to CityWire he ruminated on not quite hitting his target

“He says he was particularly heartened by the strong support of retail investors. ‘We attracted something around £30 million of retail support, which was quite encouraging,’ Godfrey said.

‘However, we failed to attract investment from asset owners. Pension funds, foundations and family offices, where I would have hoped to get enough commitments to get us over the line, didn’t invest.

‘I think that this showed that individual investors are not one dimensionally interested only in the short term; if you talk to them in a language they can understand, they will make investments in their own interest over the long term, and that made it worthwhile.’

Although he admits that he is unlikely to repeat the bruising affair, he said that if he had it all to do again he would have attempted to secure cornerstone investors before going public.

‘It’s hard to know what you should have done differently because there are no counterfactuals,’ he said. ‘But knowing what I know now, I would have spent longer trying to get real commitment from asset owners before I even started.’

He feels that despite the lack of investment, asset owners did give the proposition a fair hearing. ‘You can only look to yourself and not blame other people for how it turned out. I would say that we may have been too small and expensive, although it would get cheaper as it grew, for a lot of asset owners.’

What honesty.


Making it easy to invest

Asking for money is tough. Even with the tax-breaks – investing in a start-up is risky and your more likely to lose your money than make it big.

I’m not planning to give all our investors Meerkats , but I do think they should have something more tangible than a share certificate. We’re funding from the crowd for the crowd.

Our product will be an APP which will help you understand whether you’ve got value for money from your pensions. Oh and the support of what we call Digital TPAS, but I won’t spoil a blog about crowdfunding by getting carried away with the sound of own ideas.

We want loads of investors and you might like to be one. Crowdfunding is easy and its cheap and it should be fun.

If you can help me – especially on the “fun” bit, I’d be most grateful.

 

 

About henry tapper

Founder of the Pension PlayPen, Director of First Actuarial, partner of Stella, father of Olly . I am the Pension Plowman
This entry was posted in pensions. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s