At some point in 2018, if I remember correctly, I found out about online crowdfunding and investing in start-ups. The first site I came up with after watching an interview with Jeff Lynn was Seedrs.
What did I do?
So, being naïve and dreamy, I thought that this is it! This is the way how I can get outstanding returns and quickly become rich! The idea was, that I could invest in most pitches at least £10.00, and having extreme diversification I am going to be safe and rich. Where the former probably is not wrong.
But after a few years, my eyes slowly opened and I realized that I have to be realistic and better use a different approach. But this post is not about being smart. This post is about the hero’s adventure. My £10 purchases got me right about here…
Hold on, not so fast…
It doesn’t really represent the reality, because I have successfully sold some of those companies in the secondary market. In the value of about £200. So, my overall loss isn’t that significant. What is significant, though, is that generally, I consider this adventure as being a mistake from my side.
Actually, the IRR figure might be realistic, have a look at it below.
Conclusion
Honestly, I can’t tell anyone not to invest in crowdfunding sites like Seedrs. Because my experience so far hasn’t been negative. What I like about Seedrs is that there is an up and running Secondary Market that allows you to exit the position pretty quickly if you want.
What I realized was that people who reside in the UK whose net worth isn’t in the hundreds of pounds and can’t use their yearly ISA allowance, shouldn’t enter such crowdfunding ventures.
But if I will ever have any positive news coming from my Seedrs portfolio, I will get them shared.
This part of the portfolio is included in my total portfolio tracker in the shares column.
