Why I won't be investing in Xinja Round 2

As a happy 1st round investor, I went back to Equitise to commit to round 2.

I’ve invested at 8-10 crowdfunding platforms, from the US, UK and Australia, and for me, Equitise is my least favourite. Why, primarily because of the funding restrictions, they ONLY allow DIRECT DEBIT.

Why this is bad for me, and possibly you…

  1. 3rd party control of your bank account. YUK. NO thanks, who has access to these details???
  2. They don’t tell you when funds will be withdrawn. (budgeting nightmare)
  3. During a material change of facts for the Booktopia raise, I withdrew my investment support, yet my account was still debited by them for the funding, weeks later (Lack of correct process).
  4. Had a Chat to support and told basically take it or leave it, and we (Equitise) have “less churn-down” than our competitors, and it helps with our AML compliance. I call BS if every other Equity Crowd Funder on earth manages to offer several funding methods.
  5. The gold standard, as available in the US is funding by card, wire, or crypto - Equitise offers NONE of these options.

Basically because of the platform - Equitise, I won’t (regrettably) be making an additional investment in Xinja.

Anyone else feel the same?

2 Likes

Hey Tim - really sorry you feel like this - we haven’t had anyone else calling out the platform as a blocker - but understand given your points why you’re not going ahead this time round. :slightly_frowning_face:Cam

I’m agreeing with that too.
My main problem, as a first time used of equitise. .
The money was withdrawn immediately … even though there are weeks left of the crowd funding - this is strange and put a kink in my budgeting.
Other platforms I’ve used - such as onmarket - won’t withdraw until the final day/ close of funding. :confused:

The main reason I will not invest in round 2 is simply that it is a reduction in the value of the shares I already bought.

More shares ultimately means they are worth less.

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Yes, I have not seen any comment from Xinja regarding this dilution to original shareholders.

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Hi @Bookman & @27413 - thanks for that - however startups doing additional rounds of funding (which a lot of them do) does dilute shareholding, but the value of the shares is going up. For example, the shares you bought at $1.25 first time round are now valued at $2.04 - this despite the fact that they have been diluted by investment received in the intervening time. So you’ve got a smaller piece but of a bigger pie. So your shares are not reduced in value. This is typical of many early stage investments as companies do multiple rounds of fundraising. If you’d like to talk directly to our CEO about this, feel free to ask further questions in the Q&A section of the current offer page on Equitise (anyone who’s logged in can ask questions). Many thanks!

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That is true @CaptainXinja however this dilution also potentially means my shares were worth $4.08 before it was decided.

In addition, I would also now have to pay $2.04 a share which would dilute my current profit of 79 cents per share down to 39 cents.

For a early investor it is not logical for me to reinvest.