WATG are crowdfunding!

Hey Gang.

So the news is out – we’re doing something pretty radical. We’re inviting our customers + supporters to actually become owners of WATG. 

What’s exciting is that anyone* can be an investor in Wool and the Gang and own a piece of the business. You can read more on our site and check out our the full pitch on our Crowdcube page.

We realise that not everyone is familiar with terms such as investing, funding, equity and shares and that they can be confusing, so we’ve written this blog post with the aim of de-mystifying a few things for you…

Let’s start at the beginning.

In order to grow, companies sometimes need to pay for things before they get money in from selling their products. For example, before a new product can appear on the Wool and the Gang website the design has to be created, which means paying designers, and the wool must be bought from the wool farmers in Peru.  

So where does this money come from?

Companies can ask investors to provide them with this funding. In return the investors get to own a share of the company – this is where the terms shares and shareholder come from. Owning a share is also known as owning equity in a company.

money

So the investor becomes a shareholder – then what?

If the company grows it can become more valuable, and if this happens the value of the investor’s shares also increases.

value goes up

That sounds like an easy way to make money…

It is, but the value of the company can go down as well as up. That means that the value of an investor’s shares may be less than the price paid for them – if this happens the investor loses money. There is no guarantee that an investor will get their money back.

value goes down

Great – but it all still sounds a bit Wolf of Wall Street to me. I’m not a banker and I don’t have mega bucks to invest. 

That’s where Crowdcube comes in. It enables regular people to invest small amounts (as little as £10) in companies that they like. Companies make a pitch for investment which appears on the Crowdcube website and if you like the sound of it you can sign up to invest. 

coins

Where can I learn more? 

The Crowdcube website explains all you need to know about being an investor and has a very helpful FAQ section. There’s also a discussion forum on our Crowdcube page where you can ask us anything!

Hopefully we’ve made it all a little clearer for you, but if you still have questions you can ping an email over to [email protected].

 

Investments of this nature carry risks as well as potential rewards. Approved as a finacial promotion by Crowdcube Capital Limited, which is authorised by the Financial Conduct Authority (No. 650205)

#InvestAware #CapitalAtRisk

 *Gangstas in the US, Canada and Japan… We’re gutted but financial regulations mean that this isn’t open to you at this time.

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