As with any financial transaction, it’s important to do your due diligence and evaluate the situation to ensure that it’s right for you. There’s always a chance you may lose out with investments and equity crowdfunding is no different. But it’s also an opportunity to invest in something that matters to you and grow your wealth in an unconventional way.
Crowdfunding has exploded in the last few years and has revolutionised investment opportunities open to small businesses. By investing in Lingoo through equity crowdfunding you are buying a share in our business because you see potential in the value of our company increasing over time.
But there are other advantages, and disadvantages, of investing in equity crowdfunding with Lingoo that you may not have thought of. So if you’re still a bit unsure whether you should invest in our business model, or how it actually works, allow us to give you some more details.
Advantages of crowdfunding
Low barrier to entry:
Investing in small, private companies was previously reserved for the wealthy. It was a closed and cliquey club. But no more thanks to the introduction of new investment regulations and crowdfunding platforms such as Crowdcube - which is how we are raising our investment.
You can invest as little as £10 in Lingoo. Meaning almost anyone can experience the excitement and potential success of investing. It is worth remembering however, that although smaller investments limit losses more, the potential return is also smaller.
Tax incentives:
There may be tax benefits open to you through crowdfunding whereby you can offset a percentage of the amount you invest against your tax bill and any profits are tax free. You can find more information on investor tax relief here on the Crowdcube website.
A simple process:
Getting involved in Lingoo equity crowdfunding is a relatively simple process. It’s free to sign up and all you will be asked is to confirm which type of investor you are. Then you will be able to view the full details of our crowdfunding pitch on our Crowdcube page. From there you can request access to our business plan and financial forecast.
Once you’ve decided to invest, simply enter the amount you want to back us by in the ‘Enter Amount’ box and click ‘Invest Now’. Crowdcube will then take you through a series of questions to verify you understand the risk of investing, confirm your identity and prevent money laundering.
Make a difference:
We believe the people that know and believe in our business model are best placed to get involved in our expanding business. Which is why we’ve turned to our crowd for cash over the banks. This is an exciting opportunity to invest in something you care about.
Because investing in Lingoo isn’t just about investing to make a profit, it’s also about investing in the future of language learning and young people. It’s about disrupting the language holiday market by backing and owning a part of a business you believe in.
Operating business:
Lingoo is an established business with a proven customer base, looking for capital to expand. We have been operating and growing for a number of years. We know our business and supporting it is an experienced and multi faceted team. Our CEO, Peter Goldstein, has significant experience working at senior levels in several large, successful businesses.
Disadvantages of crowdfunding
Risky business:
Investments always carry risk and added to this crowdfunding is a relatively new concept. You should only ever invest money you can afford to lose. Obviously our aim is to grow our business, however, your return on investment is not guaranteed and your shares may not increase in value or dividends be paid.
Low liquidity:
Crowdfunded shares have low liquidity, which means once you’ve bought them it’s hard to sell them. Equity crowdfunding is a long term investment and you can’t just pull your money when you want. It’s not like buying and selling shares on the traditional market. You would likely have to wait until the company is sold.
How Does It Actually Work?
We have a fund target and a timescale in which to raise it. Once our pitch is fully funded and our business closed to further investment, investors will receive a copy of the Articles of Association via email.
This includes full details of the rights attached to shares and the cooling off period. During the cooling off period you can query, reduce, or withdraw your investment. The payment collections process then starts and the electronic share certificates are issued.
You must be over 18 and resident in the UK or a country where you are legally entitled to investments of this nature.
Investors contributing over £100 and over £300 will receive 30% and 50% respective discounts on their next purchase with Lingoo. And if you invest over £3,000 you will become a grade A investor giving you certain voting rights as well as the right to participate in dividends and capital distributions.
Crowdcube is a reputable investment based crowdfunding platform. It is regulated by the financial services register and is a member of the UK Crowdfunding Association.
If you have further questions about investing in Lingoo please don’t hesitate to contact us. But first head on over to our Crowdcube crowdfunding page to check out our full pitch.
