BABB: Valuation update for equity crowdsale

startup fintech entrepreneurship blockchain banking

We launched the equity crowdsale to the public two weeks ago and it’s been fantastic to receive the support of more than 900 investors, some from the community and some totally new to the BABB project.

Since we launched, some concerns have been expressed regarding the valuation of the company.

We valued the company at £100 million, and we have discussed this figure (and the workings out behind it) at length. We believe that the initial valuation remains fair and objective built on conservative financial projections.

However, we are always open to feedback and it’s clear to us that although the valuation has been accepted by over 900 people, many others continue to have concerns.

One-off valuation adjustment to £50 million

For that reason and to ensure that our crowd funding investors get a very attractive investment opportunity, we have decided to make a one-off adjustment of the valuation to £50 million.

This adjustment means that 2.91% of the company is now available for the £1.5 million investment. We will close the equity crowdsale shortly after we reach the £1.5 million fundraising target.

Why now?

Yesterday, the regulatory business plan was signed off by the board and issued to regulators in the UK as part of our banking license application. The application is progressing quickly and we want to ensure we satisfy the minimum capital requirements as soon as possible.

We have also received a lot of interest from alternative sources of investment with various private investors lined up. We plan to close the crowdsale once we reach the £1.5 million target (without overfunding) before moving on to focus on raising the additional funding for the minimum capital requirement from these investors.

We’re not the first to make this kind of change. It’s relatively common for a company to go out to their community with a valuation and then revise it based on the feedback they receive. Camden Town Brewery, one of Crowdcube’s greatest success stories (which we’ve mentioned in previous posts) also adjusted their valuation following discussion from the crowd.

BAX bonus

We’ve also decided to roll out a new BAX bonus for investors.

Thanks to the updated valuation, investors will now get twice as much equity for their investment. We will also give every investor a bonus of 20 BAX per £1 invested in the equity crowdsale.

This bonus will apply retroactively to all investments made so far, so if you invested since 26th June, you will get 20 BAX for every £1 you pledged.

Thank you

We want to thank you for your support and for your constructive comments on this topic and we look forward to welcoming you as shareholders in BABB.

You can invest on the BABB page on Crowdcube. If you have already invested twice, you will need to whitelist your email address — please email [email protected] to get whitelisted.

We will hold a live Q&A on Friday at 2pm UK time, and in the meantime you can ask any questions in our equity crowdsale Telegram group.

Valuation update for equity crowdsale was originally published in BABB on Medium, where people are continuing the conversation by highlighting and responding to this story.

Original article was created by: BABB at medium.com

Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency or ICO.

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