The latest indicative share price can be found in your portfolio.
How has this indicative share price been calculated?
The current share price displayed beside a company in the portfolio is an indicative share price (except for companies with a "listed" status - see below). This is indicative because the majority of shares available through Crowdcube are unlisted; because of this, they are unlikely to be traded on a regular basis and therefore an updated share price only occurs during a valuation event.
What are valuation events?
Priced round - The most common valuation event is a new issue of shares to investors (i.e. a new priced equity funding round). In the event of a new priced round, Crowdcube will update the share price when either i) a new filing at Companies House shows a substantive round has occurred ii) the company provides Crowdcube with evidence of investment at that price (e.g. a subscription agreement) or iii) on completion of either a public round on the Crowdcube website, or a pre-emption round.
Convertible round - The nature of a convertible loan agreement (or advanced subscription agreement) is that the round is unpriced; the share price is set at the point of conversion. As a result, Crowdcube will update the share price when the convertible converts at either i) the undiscounted valuation or ii) where applicable, the long stop valuation. (For more information about convertibles please see here).
Insolvency - Unfortunately, not all companies that raise through Crowdcube succeed. Where a company enters into any insolvency process, Crowdcube will review the documentation provided to see if there is an indicative return. If this is the case, the share price will be updated to the expected return; if no indicative return is included, Crowdcube will update the share price to zero.
Exit - In the event that a company exits (whether at an increased or decreased valuation), Crowdcube will be involved in the administration of the exit and any subsequent payment distribution. As part of this process, at the point the binding transaction documents are signed by Crowdcube as nominee, we will update the share price to the price to be paid on exit.
Company provided information - The above valuation events cover the vast majority of situations where a share price will change for an unlisted company. However, in the event that another valuation event arises and the company makes Crowdcube aware, we will review the situation, request any evidence required, and update the share price accordingly.
How accurate is this share price?
Crowdcube makes every effort to keep the share price data accurate and up to date. However, different companies at different stages may not have a valuation event for a significant period of time and as a result, the indicative share price may not change.
Exceptions
Listed companies
The exception to this process is if the company status is "listed". In this case, the shares are listed on a recognised stock exchange and the price is determined on secondary trading. The share price displayed will be the price notified to Crowdcube from our partner Seccl in the previous 24 hour period.
Direct companies
Certain investments may be “direct” with investors holding shares directly (and not through the Crowdcube nominee). If the Crowdcube Nominee is not a shareholder in the company, the amount of information available is greatly reduced and so no indicative share price is available. The price shown will instead be the amount you originally invested in that pitch.
How do you know the latest share price is accurate?
As a private company without listed shares, any share price supplied can only be indicative. However, we have a robust methodology for calculating this indicative share price.
Not able to see the share price?
Please see why here.