September 14, 2020

Helping more people invest

We’re opening up additional allocation for the 20,000 who missed out on investing in our funding round. 

We’re not tired of saying it: last week was the biggest in Chip’s three year history. 

We still cannot believe that in less than 48 hours, we had raised over £10 million in our biggest funding round ever. 

While this was a massive triumph, it meant the remaining 20,000 people who had requested-access missed their chance to participate.

In the lead-up to the crowdfund, we received such overwhelming enthusiasm from those wanting to join our community, so after reaching our cap so quickly, we wanted to see if there was absolutely any way we could extend this round to allow more people to join. 

We worked through the weekend alongside our lead investors and the amazing team at Crowdcube to open up a second allocation , going live at noon on Tuesday 15 September, 2020. 

You can own a part of Chip for as little as £50, making it as accessible as ever to become an official Chip investor and help us grow to be the next unicorn

In the last twelve months, we’ve seen historic growth and we’re excited, ecstatic even, to be able to expand our investor community to allow us to continue to grow while bringing you along for the journey. 

Want to hear exactly why you should become a Chip investor? Read our latest blog.

What is the difference between this round and our previous round?

Not much, really.

The only difference is this investment will convert to B-Investment Shares instead of A-Ordinary Shares. 

Both share classes rank exactly the same in terms of ownership, so if you own 1% of Chip as an A shareholder, it’d be worth exactly the same if you were a B shareholder with 1%. 

Similarly, if we were ever to sell the business, they’d be valued exactly the same.

Where they differ is where A shareholder has a vote so for example if we were to be acquired, we’d have to pass a shareholder resolution, we’d have to get 75% of voting shareholders to sign that off. 

There’s also pre-emption rights which enables an A shareholder to invest at future rounds on the same terms as incoming investors.

In line with the retail Prospectus limit, we can only raise a certain amount of money in each share class within the space of 12 month, which is why we’ve had to go down this route.  

This round will still operate as a convertible loan note, with a 20% discount on your share price at the next equity round, plus a handsome 8% interest coupon. 

This round will be open until all allocations are exhausted, and seeing how quickly our last round wrapped up, we encourage you to get in while you can!

Please remember, your capital is at risk

At Chip we believe that investing should be for everyone. But equity investing is not without its risks.

Investing in this convertible or investing in any start-up is high risk. It’s not the same as having your money in a savings account.

Your investment could be locked in for a long time, as you don’t get a return until we exit (i.e. we’re bought, or go to market in an IPO). So don’t invest any money that you might need suddenly in an emergency.

Most importantly your capital is at risk when you invest, and remember, past performance is not a reliable guide to future performance.

When investing your capital is at risk

Remember your Capital is at Risk and past performance is not a reliable guide to future returns. The value of your investment can go down as well as up and you might get back less than you originally invested.

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