Due to popular demand, Pynk is opening up crowdfunding investment to yet more countries!

PRE-REGISTER HERE.

Following the massive success of our last Crowdfunding campaign (377% over funded!) — we have since had unprecedented demand from our global community, now in over 180 countries, who unfortunately couldn’t take part the first time around due to certain country restrictions.

To help us decide whom to partner with for this crowdfunding round, we used our Crowd Wisdom product to find out which platform would best suit the needs of our international user base.

Following their feedback, we’re proud to announce that we will shortly be opening up equity investment to more countries via Funderbeam, an international crowdfunding platform that offers investors the world over the opportunity to invest in fast growing companies.

The campaign will open on August 24th and run for a limited 2 week window (closing Sep 3rd).

For early bird access and to stay informed, PRE-REGISTER HERE.

If you’re already a follower of Pynk, you’ll know we recently ran our first ever crowdfunding campaign on Seedrs across the month of June. We were pleasantly surprised by the response, especially in light of current economic conditions, and we‘re extremely happy to welcome 904 new investors to Team Pynk.

Some of you may be surprised to hear we are running another campaign so soon after the close of the last - but there are several reasons behind the decision.

Firstly, our total raise target for this seed round is ￡2m. That means as a company we have more to raise in order to fund our growth plans, while not over-diluting existing shareholders. As communicated to Seedrs investors, we are in fact splitting this across 2 separate convertible notes, see FAQs below for more information on why — but essentially the rationale for this is so we can capitalise on the UK government Future Fund announced as a direct response to Covid.

Secondly, we want as many retail/everyday investors to have the chance to become Pynk shareholders as possible. Pynk is built to serve everyday people - and so the more people that own a slice of the Pynk pie, the better. 

Thirdly, it is in response to demand from our international community and other fin-tech communities. Some of our international Pynksters were left frustrated as could not invest via our last campaign; Funderbeam opens up investment to most countries worldwide. 

Unfortunately, we still can’t take investors from the USA, Republic of North Korea, Yemen, Iraq, Iran or Libya. We are exploring solutions to open up crowdfunding to American Pynksters next year. 

Finally, crowdfunding as a means to raise capital has additional business benefits for an early stage startup such as Pynk. Our previous campaign drove our brand awareness opening up new commercial opportunities, and in addition we enjoyed increased sign up rates to our Crowd.

SEQUENTIAL CROWDFUNDING CAMPAIGNS

Revolut, Monzo and Freetrade have previously written and talked about the role crowdfunding has played for them in the earlier stages of their respective start-up journeys. In fact, Freetrade ran a series of 6 subsequent campaigns between the relatively short time period of July 2016 to May 2020. Having closed their last round in a matter of hours, to a staggering 8,000 investors, on a ￡140m valuation — their earliest investors will today be enjoying a handsome return. 

While our model is quite different from Freetrade (yes we are both 0% fees, but that’s where the similarities end) — we see every reason to learn from their success and follow in their footsteps. Myself, Seth and Ru look forward to the day when we will deliver those returns to Pynk’s earliest supporters.

TALKING ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG)

Not everyone will be aware that at the core of Pynk is a sustainable business model that supports ESG investing. We haven’t talked a great deal about this to date — as have been explaining the underlying product that uses AI to find the Wisdom in our Crowd. Let me be clear in saying that our focus on ESG investing is neither new nor a pivot; it has been been a key component since day one.

Our approach to Social Investing returns power to the Crowd, so ultimately they will have the say in where capital is deployed — supporting the companies that do good in the world, while offering transparency on where and how funds are invested.

This Crowdfunding campaign gives us an opportunity to talk more about ESG within the Pynk Social Investing model for the first time. For a sneak peek into our new campaign ‘Would you Rather?’ — checkout the video at the top of this page, and don't forget to sign up on the registration page.

FREQUENTLY ASKED QUESTIONS

In anticipation of the Funderbeam campaign, below are answers to some of the technical questions that we have previously fielded and you will likely be asking if considering investing.

How much are Pynk raising in this seed round?

We are raising a total of ￡2m for this round, from a combination of crowdfunding campaigns, angel investors and VCs (not confirmed yet, discussions in progress).

The ￡2m raise is split across two distinct convertible notes. The first note used in the Seedrs campaign is different from the second note used in the Funderbeam campaign.

What is a convertible note?

A convertible note is short-term debt that converts into equity at a later stage. Early stage startups often use this mechanic if today’s valuation is not clear. In the context of a seed financing, the debt automatically converts into shares of preferred stock upon the closing of the next traditional equity round of financing (in our case, Series A). 

For more information on convertible notes, please see this video:

https://www.youtube.com/watch?v=njx09wXb9o0

What is the difference between the Seedrs note and the Funderbeam note?

As mentioned above, the first note used in the Seedrs campaign is different from the second note used in the Funderbeam campaign.

The first note is (S)EIS compliant, resulting in tax benefits for UK investors.

The second note is Future Fund compliant. This means Pynk can apply for UK match funding from the UK government later this year. While the note is not (S)EIS compliant, investors of this note will enjoy 8% annual interest on their invested amount before it converts into equity (at Series A). From an investor perspective, we think that represents a good deal.

What is the valuation cap and discount with the Funderbeam convertible note?

As with the first convertible note, the valuation cap is set at ￡10m. That means, in the event of our next traditional equity round that trigger conversion, investors will enjoy conversion to equity at a valuation of ￡10m (assuming the valuation is greater than ￡10m at that point in time). 

We will schedule a live AMA session where we will field any questions from Funderbeam investors directly. In the meantime, please leave any questions below and I will come back to you as soon as possible.

Looking forward to welcoming you on board as a Funderbeam investor over the coming weeks!

Best wishes,

Mark Little

Disclaimer: I am not an investment advisor. Your capital is at risk with any investments into startups and investments of this nature carry risks to your capital. Please invest aware and make sure to complete your own research and due diligence. Please consult a professional investment advisor before making any investment.