Here at FundedByMe we have a number of serial crowd investors who love what we do almost as passionately as we do. Magnus Collin is one of them. We asked him to share his crowd investor secrets and his tips for upcoming campaigns he has his crowd investor eye on.
1. Introduce yourself – what is your background, passions and day job?
I am a 40 year old IT and process improvement professional currently working for a software company focusing on secure product data collaboration solutions. I am a husband and a father of two wonderful children who make sure I am fully occupied most of the time. I have a thing for alternative investments and I am also a serial crowd investor.
2. How did you first get familiar with crowdfunding and why does being a crowd investor appeal to you?
For me it really started two years ago, when I somehow ran into a very compelling campaign for Jascha on FundedByMe. I had earlier bought into some tech gadget Kickstarter rewards-based campaigns. I find it appealing to, by investing, actually supporting someone else’s dream and passion coming true and also the fact that it feels more personal to invest in smaller companies, with the possibility of creating a mutual “relationship”. Joining in early also gives the opportunity to take part of the potential growth generated by good ideas, concepts and products – something earlier in most cases only possible for larger investors, business angels and family members or friends of the entrepreneurs.
3. Which campaigns on FundedByMe have you invested in? What made you want to get involved?
I have made 21 investments so far on FundedByMe – they are Jascha, InstrumentChamp, FundedByMe, Goodio Cools, MowJow, Mobitrotter, Lovetagged, Åre Natural Mineral Water, Virtuous Vodka, Isbjörn of Sweden, Give, Commons, NOA Potions, Mormor Magdas Glass, Eggs Inc, Zeifie, Fikabox, Marita Huurinainen, Fast Track, Someone.io and BrewDog.
Must admit that some of my investments have been made based on an interest in supporting the founder or an idea rather than believing fully it will become the next big thing, but the major part of the campaigns I have entered I think had great potential. Some of the ventures have not followed through as expected, ran into technical or product positioning issues and more or less paused their activities – so you have to consider the risk. The companies I did invest more in was Jascha, InstrumentChamp, Isbjörn of Sweden, NOA Potions and Mormor Magdas Glass. What differed was that I had a stronger believe in the product and the team behind, but it was also dependent on current availability of capital to invest.
4. What do you expect to get out of these investments on the long run?
Dreaming of one or two of the investments turning out to be the next unicorn, but to be more realistic about it – hoping to be able to spread risk and still overall exceed at least the Nordic stock exchange indexes.
5. What is the most important tip you’d give other investors considering crowdfunding?
All early stage ventures are high-risk and often very dependent on the founders’ combined drive and endurance. Also be aware that pre-valuation of some of the companies can be “questionable” short-term and are often based on a prognosis with rather aggressive expansion plans. Examine the figures, ask questions and add also your believe in the product, concept and most important the people involved to the equation, even more important of course if investing more.
6. Are there any new investment rounds on FundedByMe that you have your eyes on at the moment?
Currently looking into Galagowear and Sofie Bly – both already established brands and ready for expansion. Also interested in FrontOffice Nordic, I believe the concept has great potential.
7. Finally, what is your favourite feature about FundedByMe as a platform?
FundedByMe makes it easy becoming an early-stage investor and has also been able to attract very interesting new companies seeking capital.
Follow crowd investor Magnus on his (new) blog here and find him on Twitter here.