Hi can someone clear up how is it possible to or when it’s possible to take my investment out
Typically you would need to wait until Chip goes through an IPO or gets acquired. Lack of liquidity is one of the primary risks of investing in startups.
However you may be able to sell early via Crowdcube’s Cubex platform, which launched earlier this year:
“May” being the main word here……
And only if Chip decide to allow it. It was muted for some of the early investors to be able to do it but time will tell…
Apologies if this is elsewhere on the forum but has there been any movement on the share value or is it still £1.41?
That is unclear, I think the price of shares in the last investment round was around £1.40 but is only a notional value and not what the shares may be worth on the open market. It is likely that if you could sell them, they may be worth less than this.
Remember you need to hold the shares for at least 3 years otherwise you will have to repay any income tax savings made which under EIS was 30% of your investment.
Just hoping Chip is the next Freetrade
Chip are not allowing CubeX trading which is a shame. Peoples circumstances change much like the company direction can as well so in a sense of fairness it should be allowed,
An update on why Chip UK will not allow investors to participate in CubeX would be appreciated.
I would like to donate any free funds I can release to Ukraine.
Chip are in the process of selling further shares in an upcoming funding round. I believe they can’t offer a trading facility while that is taking place.
As far as I know, it is not Chip’s responsibility to offer an informal platform on which to trade its shares, though they may have no objection if a third party such as Capdesk offers such a service. As everyone must surely know, when you invest in an early-stage start-up it is part and parcel of the risk/reward equation that you may be unable to trade out until such time as the Company is either bought or is publicly listed.
I hope you are all aware that if you bought shares then you have invested in an asset that is basically illiquid, and across the board of start- and scaleups there is a high risk of not returning an index beating yield or much worse, even if some of your portfolio companies ‘exit’, eg by listing on the stock exchange, merger etc. And often crowd equity exits take many years to materialise. There are some rudimentary ‘secondary’ markets where it’s possible in some cases to sell, sometimes. But often these are not very liquid.
I know you know all that because we all read the small print and do our own research etc before we invest. But I remind myself of these things each and every time before I press the invest button on these platforms, I want be very sure that over all those years that my funds are tied up, they would have a high chance beating things like the Chip saver rates and if not I keep them in the saver or so
With the strength of the Dollar, Chip will get snapped up by a US company wanting to break into or increase their share of the UK market. My fear is just the amount they pay for each share.
I better buy another few thousand shares if Elon is spending some more of his money