Serial Crowdfunder Will Perrin Reveals Why He Invests in Startups on Crowdcube

Taking time from celebrating its recent 100,000 member milestone, Crowdcube sat down with serial crowdfunder, Will Perrin, to discuss why he looks to the equity crowdfunding platform for investments. This interview is part of the website’s “Proud of our Crowd” series.

CrowdcubePerrin is an IT business interface lead for a global energy company who has helped fund various UK businesses including Zero Carbon Food, Adzuna, Chirp, Good Egg, JustPark and Powered Now. He previously invested in businesses through the stock exchange and via company share schemes.

During his interview, Perrin stated how he originally found Crowdcube:

“Sitting in the airport before heading off on holiday, I was browsing crowdfunding sites like Indiegogo and Kickstarter on my tablet and thought ‘wouldn’t it be great if there was a platform which offered investors equity in businesses, instead?’. I did a Google search, and there was Crowdcube! That was in April 2013, when Crowdcube was doing a round of funding itself – and I immediately invested.

 

“I like being able to meet the people behind the companies, to have a conversation and grill them like the Dragons do about their business strategy and plans for the future. I did an MBA eight years ago, and I enjoy testing what I’ve learned; to see if I can make a good investment based on my knowledge.

 

“I find the investment process very clean and intuitive. The pitch videos give you a sense of how professional the business is, and all the numbers are there if you need them. The tax breaks we get when a company is registered with Enterprise Investment Scheme (EIS) or Seed Enterprise Investment Scheme (SEIS) – 30% income tax relief with EIS and 50% with SEIS – are great to have, and take a lot of the risk out.

 

“I talk about crowdfunding all the time. Every time I meet someone I tell them about the companies I’ve invested in, and quite often they go off and register themselves!”

Nothing what attracts him to Crowdcube startups, Will explained:

Will-Perrin-Investor“What attracts me first is a clever idea. I want the business to have first-mover advantage, and to be protectable, ideally with its idea patented so it can defend its position. Scalability is also important – a café is only so scalable, whereas a mobile app has limitless possibilities.

 

“I read the pitch carefully. I don’t go into the spreadsheets much, as I think there are enough good people at Crowdcube vetting these, and I know other investors will have drilled into the numbers and made a call based on what they found. That’s the beauty of the wisdom of the crowd; if something isn’t funding, it’s generally not worth investing.”

 

“The product has to be really good. I always try to get samples to send to members of my family and friends to see how sound the proposition is – if people don’t like the product it’s a non-starter.”

In regards to his crowdfunding advice, Perrin shared:

“Don’t invest money you can’t afford to lose! Read the pitch carefully, and always ask about the exit strategy – so many companies don’t have one. If that’s the case, it’s pointless going in. And go to the parties! The investor events held by Crowdcube, and also by the businesses themselves, give you the opportunity to check the business out and ask questions of the management.”

Crowdcube adds that “Proud of our Crowd” is a series of interviews with its members. Neither the platform nor the investor should provide investment advice.



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