What we do, and how we get paid for producing Intelligent Crowd TV

Posted On: 31 Jan 2017

If you were to invest in a small AIM stock, offshore oil exploration, an African diamond mine or junk bonds, you would be able to find qualitative research to assist your decision. Crowdfunded investments remain the only asset class where you are invited to invest your money, without the benefit of any such third party research at all. There is a good reason for this: individually, the fundraisings are too small to support commercial research. However, we believe that opportunities can be curated based on some simple rules and information. More information means more intelligent crowdfunding decisions.

We seek out early-stage propositions which are, in our view, superior to the deals made available to you across the major equity crowd funding platforms. This means:

  • The proposition has an international, ideally global, prospective opportunity so that the higher risk that you engage when investing in a start-up is matched by significant upside
  • The company is offering voting and pre-emption rights, so that you are less likely to be left behind as the company scales and raises subsequent funding rounds
  • There is a coherent business plan in place. It may not be achieved or it may change in the cold light of execution, but the company starts out at least with a considered plan.
  • There is at least some Seed EIS component in the funding round, allowing you to offset some of the risk and improve your net upside through CGT relief
  • All companies we present, whether or not benefiting from Seed EIS advance assurance, will have EIS advance assurance
  • Together with our partners at Argus Research, we have given a positive assessment for growth of the sector in which the company operates
  • Together with our partners at Argus Research, we have given a positive assessment for the skills, academic and professional qualifications of the founding team to accomplish the objectives set out in their business plan
  • Whilst valuation is more art than science, we have considered the pre-money valuation placed on the business and consider it to be within the bounds or reasonability.

Each Monday evening, our guest host team listens to presentations from up to four management teams and probes their plans before handing them over to John Eade, President of Argus Research, and you, our audience, for live Q&A via Skype.

You’re then able to make some important initial assessments: Do I like this person – can I do business with him or her? Do I trust this person? Do I want to find out more?

You’re invited to register an expression of interest with us: an amount that you think you might wish to invest, subject to review of the full business plan and financials, through our nominated partner’s FCA-regulated Crowdfunding platform.

If these expressions of interest from you, our audience members, collectively indicate that a company could achieve its fundraising objective, their pitch will go live on our partner’s platform, with our audience receiving a link which provides priority access in the investment round for 48 hours.

When an investment round closes successfully, Intelligent Crowd TV is paid part of the total fee charged by the Crowdfunding platform to the company.

How to make best use of Intelligent Crowd:

Posted On: 31 Jan 2017

During an event on Crowdfunding that we co-hosted with Bloomberg Tradebook in London, we ran a straw poll to ask our audience of City professionals:

  • Do you have the skills to evaluate start-up investment opportunities?
  • Do you have adequate time?

So if you’re time-poor but have income tax you could be offsetting, Intelligent Crowd could be what you need. HMRC sets an annual limit of £100,000 that you can invest in SEIS companies and attract income tax relief at the higher rate of 50% - click here for more details. So to make maximum use of your allowance you could, for example, decide to invest £2000 in one out of the four companies showcased on Intelligent Crowd each week. By the end of the year you will have built a diversified portfolio of 50 companies (all IHT- and CGT-free) and be due £50,000 rebate from HMRC.

At Intelligent Crowd TV

Posted On: 31 Jan 2017

We believe that the purpose of The Crowd is to act together to help launch great companies, but at the same time to make decisions independently based on information and insight. The Crowd isn’t there to be followed but to act in unison, as a syndicate. If your investment decision is based mostly on the progress of a funding round, you are relying on the notion that the investors whose commitments precede yours have made properly balanced, informed, skilled & diligent assessments. This is a dangerous assumption.

Intelligent Crowd TV helps you to find great companies. They won’t all succeed but we believe that Intelligent Crowd companies will outperform crowdfunded companies generally.