So because this gets asked so often, I wanted to put it up as a request to Crowdcube as a platform (Yes, that's a thing here). Basically, If you'd like to see Crowdcube Implement a secondary market please like this post - the like will count as a vote. Hopefully, over time, it can demonstrate demand to them and facilitate a response.
I rarely use secondary markets on ECF platforms because of the information problem (seller always knows more than buyer, unless buyer is a shareholder too) and lack of EIS relief, but appreciate it's a powerful tool.
Also, 'what company would you buy (or sell) on Crowdcube's secondary market' thread, anyone??
-If you're asking me, it'd be Adzuna, Farmdrop and Fingopay off the top of my head.
Pleased to see you've got your site up and running so quickly.
Would definitely be keen for Crowdcube to open a secondary market.
Thanks for the compliment! And thanks also for signing up as a member :)
It'd be nice, for sure. Having said that, If it would somehow hurt their amazing dealflow (diverting resources, etc), I personally wouldn't want it.
What would you buy, out of interest? :)
Also I should've mentioned: Not to discourage anyone, but the CEO is still stubbornly against it going off his commentary in the Q1 shareholder update. Would be nice to change his mind haha, or even get a dialogue going.
I agree that I would only want it if it didn't detract from their main pitches side (not sure if Seedrs has suffered due to their SM?).
I was looking at it from the angle that the lack of liquidity can be a deterrent for some with crowdfunding, so can help alleviate some concerns and increase the pool of investors.
However, I'm also not sure whether Capdesks new SM might negate the need for it slightly?
I would look to buy some Crowdcube shares on their SM if they did implement one. Would you be keen on any particular shares yourself?
@Alex It's great we're on the same page haha! Absolutely agree. I try to look at ECF as a long term investment, but SMs still make great nice-to-haves/safety nets; you never know when you might need liquidity (e.g. a personal financial emergency, etc). I would consider buying more Gohenry shares, they have become one of my favourite businesses. I also would probably want to look at Fingopay - a fingerprint payments company I missed. Practically, there's a few things I dislike about SMs too: - EIS relief: if you buy shares on a secondary market through EIS, you cannot ever claim EIS on that company thereafter, even in future rounds/investments. - Information asymmetry: The seller always has more info than the buyer. I've heard horror stories of people buying shares, then finding out the company is privately in turmoil.
@ECF Fan Thank you! And thanks for flagging my mistake, i've now corrected/edited this!
Hahaha, yes! 🤑🤑🤑