MOD Devices continues to grow

Dear MOD Devices users

I am happy to announce that we are now launching a new crowd investment campaign for MOD Devices at the CrowdCube platform.

This campaign is similar to the very successful Seedmatch campaign we launched about one year ago, but the reach of CrowdCube extends much more than Seedmatch, which targets only german-speaking countries.

As a company that is so much rooted in communities, it is very pleasing to be able to extend to the distinguished members of our audience the chance to participate in the business side of our endeavor too. The company had steadily grown in the last years and, as a founder, I am happy to be able to share with our main stakeholders the profits of our business.

MOD Devices aims at shifting the power from individuals to the collective and it makes a lot of sense to us that we also shift the power on the business side of things.

This particular campaign aims at raising the necessary funds to push both products we have launched in 2020. The Duo X, which reached the retail market in July, will be heavily pushed in our core markets. The MOD Dwarf, which has made an unprecedented debut at Kickstarter in February, will get the market introduction it deserves. The responses on both products have been great and we are very excited about putting them on the spotlight.

The crowd investment scheme of CrowdCube is based on a proxied shareholding company - in the form of an SPV - that holds the shares of the many small investors. This enables potential investors to invest amounts as low as 10£ (roughly 10.85€) and still become a shareholder of the company.

The link to the campaign is www.crowdcube.com/moddevices

It is currently open on private mode, meaning it is not yet listed on CrowdCube, but is already available for those who have the link. Investments are already happening.

Please share it with your friend and other people that would like to join our business.

Let’s step onto the future and share the profits of doing so :wink:

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What does that mean?

I gave this a cursory look. In order to view the full details I had to “join” Crowdcube. When I inserted my country as United States, I was blocked from being able to finish registration.
Just an FYI for anyone looking into this.

I also searched a little on Crowdcube themselves as a platform and found pretty polarized reviews, either flag waving fans or dissatisfaction. The average review that stood out to me with some common sense was this:

…Crowdcube is more of a donating to a company you’re a fan of platform rather than a strategic investment opportunity.

From what I can tell no onus is put on the companies to offer any form of investor relations once they have your money. Of the investments I have had one is very good, one is rather good but tells you not to speak to them, and four are just silent - even ignoring requests for an investor update.

The thing is in the grand scheme of things you are small investors with no clout, so they don’t care. They don’t need to care. There is no way to exit these investments (and Crowdcube are clear about these dynamics up front in fairness) but it does mean you have effectively donated money to a company. On the tiny off chance that one day it’s acquired you may get some money back, but beyond that nothing. If they can’t respond to an email, a dividend is very far down their list.

As a platform Crowdcube is fine. I have no issue with the company itself. However it has been a lesson that these aren’t investment opportunities really. Most of the companies don’t see you as investors, you’re either a fan or a chump.

Gianfranco, can you address any of the issues or possibly you already have in your entire pitch. I was just unable to view it in full since I could not sign up to join Crowdcube.

Hi @teknico

Sorry for the long delay. I missed this one.

We just provide a bridge between two communities that are beyond us. The traditional business has a handful of individuals making decisions for the entire population of their customers. We, on the other hand, provide only the media through which two populations interact . What the developers will develop or what the musician will load on his device depends only on them.

Hi @anrque

Sorry for the bummer about the US restriction. There is practically nothing I can do about it. The only possible way to overcome this is if your investment is higher than the 25k€ threshold, allowing you to do a direct investment.

Regarding the review, it seems to lack a bit of understanding of what it means to invest in a start-up

This is partially right. When you pledge your investment you still need to confirm it once the campaign is funded. At this point you will receive a Term Sheet and, if you do not agree to the terms, you are not obliged to make the investment. Each company defines its own terms and Crowdcube has only a few requirements the company needs to comply with, which is a very good thing. As a founder, the last thing you want if to need to comply with the individual demands of all shareholders as this can easily become a huge problem.
But at the same time, there is an agreement between the shareholder regarding reporting and it is the decision fo the potential new investor to agree on such terms or not.

This is very misleading. You are not making donations because you get equity in exchange for your investment. The issue is the liquidity of this equity. As with any other start-up, you will only see this money back in two different circumstances:
1- the start-up has been bought by a bigger player, which people call an “exit”
2 - the start-up has grown to the point it can start distributing dividends, which makes it not be a start-up anymore.

In any of the cases, the returns are only happening in the future, and if the company manages to overcome the start-up phase. It is risky, but that is the nature of it. Full liquidity is only possible when investing in companies that are listed in the stock exchange.

I hope I have helped to clarify your raised issues.

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