Crowdfunding Q&A

Our equity crowdfunding campaign is now live on Seedrs. In case you’re not familiar with the terminology, here’s a quick Q& A to explain what it’s all about.

What is crowdfunding?

Crowdfunding is when a business’ community of customers, family, friends, and investors come together to support the business by raising funds.

What’s the difference between rewards based and equity crowdfunding?

When we launched back in 2019 we ran a successful rewards-based crowdfunding campaign. People donated money in return for rewards including beer, t-shirts and hoodies. It helped us raise the money to brew our first batch of beer and got us off to a flying start.

This time round we are equity crowdfunding which means that in return for investing, people will receive a share in our business. 

How does the process work?

1. Pre-registration

Some investors chose to pre-register for the campaign to get early access.

1. Private live

The campaign went privately live to our pre-registered list of investors who had exclusive access to review our pitch and invest.

1. Public live

Our campaign is now live on the Seedrs website for a limited time to anyone who would like to invest.

1. Close

The campaign will close within 30 days of us going live, once we’ve reached our target and are no longer open to further investment. All investors have a seven-day cooling off period before share certificates are issued and your ownership of a part of Jump Ship Brewing becomes real.

How do I pay for my investment?

Once you’ve made an investment you’ll need to pay for it. If you are able to
pay with a debit/credit card, you can do so as part of the investment
confirmation process. If you’re unable to pay by debit/credit card, you will
need to make a deposit into your Seedrs account and then allocate the
investment amount to the investee campaign. You must deposit and pay for the
investment before the campaign closes, or your investment will be cancelled
and you will not receive shares in the business.

How much can I invest?

You can invest from as little as £10 up to the full amount that Jump Ship is
seeking – and note whether you’d like the investment to be public or
anonymous. You will then be presented with an Investment Agreement, which
is a standardised agreement between you and Seedrs with respect to your
investment. If you’re happy with it, click to accept, and that’s it – you’ve made
an investment!

What is overfunding?

Businesses must reach their targets on Seedrs within 30 days, and if they do
not, all investors receive their money back. However, if a business hits its target
before the 30-day period is over, it can accept additional investment – in
exchange for additional equity – if it so chooses. This is called overfunding,
and investors who invest during the overfunding period do so on the exact
same terms as other investors. The one difference in overfunding is that
businesses do not have to accept any or all of the funds they raise in their
overfunding period. Seedrs will let you know if we have chosen not to accept
your overfunding investment via email, and Seedrs will refund your payment to
your Investment Account.

Can I cancel my investment or change my mind?

You can cancel an investment at any time before a campaign closes from within
your Seedrs Investment Account. You have a minimum of seven days to cancel your investment. By cancelling, funds already paid will be returned into your Seedrs account to be paid into other investments, if you like.

If you have funds in your Seedrs account that are not currently committed to an
investment, you may withdraw them at any time from your Investment Account.
This can take up to 48 hours and must be returned to the account from which
they originated.

What happens when the campaign ends?

Once our campaign closes and the Seedrs team have successfully completed
legal due diligence and investment documentation, Seedrs will transfer the
funds to Jump Ship Brewing in exchange for shares. Seedrs will then send you an electronic share certificate, confirming that you are officially an investor in
Jump Ship Brewing (hooray!) and will include a link to our post-investment portal where you can keep in touch with us and our progress.

When can I sell my shares?

The main way you can make money from your investment is by selling your
shares in Jump Ship Brewing for more than you paid for them. There are a couple of ways that this might occur: if Jump Ship grows to the point where it floats on a stock exchange, is bought by another company or conducts a share buyback, you are likely to be able to sell your shares – potentially at a profit – at that stage.

You may also be able to sell your shares on Seedrs Secondary Market,
whereby investors can buy and sell shares from each other online. Bear in
mind that the ability to buy and sell shares will depend on demand, meaning
that you may not be able to sell them immediately.

How much will my share be worth?

The value of your Jump Ship shares will depend on how much money you put in and the valuation of our business.  As we grow the business, the value of your share will increase. If the value of our business decreases, so will the value of your share.

What do platforms like Seedrs offer?

Seedrs is a crowdfunding platform that offers the chance for lots of different investors to easily invest in start-up businesses on the same terms. All businesses listed on Seedrs go through due diligence checks before a campaign can go live. Seedrs also generally ensure that the company’s shareholder agreement contains pre-emption rights on the issue of new shares and investor consent rights over the creation of new classes of shares.

Are there any tax benefits to investing?

If you’re a UK taxpayer, you could take advantage of generous tax reliefs, including up to 30% of the investment in EIS eligible shares. (Jump Ship Brewing has EIS Advance Assurance). Seedrs will take care of organising your digital tax certificate which will be available to download in your Seedrs account.

Please note that tax treatment depends on your individual circumstances and may be subject to change in the future. Jump Ship Brewing and Seedrs do not provide legal, financial or tax advice of any kind, and nothing in this guide constitutes such advice. If you have any questions with respect to legal, financial or tax matters relevant to your interactions with Seedrs or its affiliates, you should consult a professional adviser.

Still have questions? Please drop us an email ahoy@jumpship.beer