Investment FAQ’s

What is equity crowdfunding?

Crowdfunding has become popular in recent years to raise finance for projects and innovations via platforms like kickstarter and indiegogo – when you back a project on these platforms, you are supporting that project and likely will receive a reward related to that project by backing it. 

Equity crowdfunding is different in that you are buying shares in the company, which hopefully will increase in value over time. Often you also receive rewards based on the level of investment, but the main thing you are buying is shares in a private company, which are also often set up in tax-efficient schemes, such as EIS (see below).

What do I get for my money by investing in 1854 Media?

If you invest, which you can do from £10 upwards, you will own shares in the company.

If you invest £10,000 or more your shares will be full voting A shares. The company is EIS approved and we are, in addition to shares, offering rewards linked to levels of investment, which can be found on our investment page.

How do I invest?

The investment window is now open and you can invest today by visiting https://www.crowdcube.com/1854

Please note that in the past we have closed the round early due to over-subscription so it is advisable to pledge your investment right away to avoid disappointment

What is EIS?

The company is EIS approved and hundreds of previous investors have successfully claimed the reliefs available. EIS is a tax-efficient scheme for UK tax-payers which was set up by the Inland Revenue in 1993 to incentivise investment in startup and early stage businesses. The main benefits are: 

    -You can claim up to 30% income tax relief on investments up to £1 million per tax year (i.e if you have paid sufficient income tax, the Inland Revenue will rebate 30% of your investment in an EIS approved business

    -Any gain is Capital Gains Tax (CGT) free if the shares are held for at least three years (i.e. you will not pay tax on your gains upon a successful future sale)

    -Payment of CGT can be deferred when the gain is invested in shares of an EIS qualifying company (i.e. you can offset an existing gain to a future date by investing)

    -If the shares are disposed of at a loss you can elect that the amount of loss be set against any income tax of that year or of the previous year (i.e. if things do not go well and your investment is sold at a loss, you can claim tax relief on that loss)

Crowdcube have explained EIS in more detail here

What is the share offer price?

The offer price is approximately £0.29 for this round. 

At previous points in time when we have raised finance the share price was:

£0.235 in 2018

£0.147 in 2016 

£0.086 in 2013

So investors in each round so far have seen growth in the value of their shares, at each point we have gone to the market to raise some capital.

Can I sell my shares?

As these are shares in a private limited company, there are limited options to sell shares before an exit where your shares are being acquired by a larger shareholder or company. That said, you have the right to find a buyer and there are mechanisms in place which would enable the transfer to another party.

Whilst there are no guarantees we would hope that around 2022 we will have sufficient profit and cash to consider distributing a dividend, which would be proportionate to the equity held by each shareholder.

We will be targeting an exit around 2024, which is the most likely opportunity for you to realise a return, which if you are a UK tax-payer will be tax-free under EIS.

Why is 1854 Media raising funds?

Funds will be used primarily to enable the business to take a longer-term strategic view to becoming fully sustainable as a business solely from recurring community income – which on current trends we anticipate being Q3 to Q4 2020. A lot more information is in the business plan but broadly speaking this will be done by:

    -Expanding marketing budgets in order to accelerate growth of 1854 Access membership 

    -Launching phase3 of our technology investments in the commissions and membership platforms

    -Enhancing our primary content channels and invest in new channels specific to some of our core new projects (e.g. Decade of Change and Female in Focus)

    -Developing new opportunities and partnerships to enhance member acquisition and retention

Can anyone invest?

Yes. It can be trickier if you are from certain countries such as Japan or the USA where individuals are required to be formerly registered as sophisticated investors, but for most territories including the UK and Europe you will be able to invest via the Crowdcube page which is live at https://www.crowdcube.com/1854

You will need to register an account on Crowdcube to invest, which is a quick and easy process. 

Please note that in the past we have closed the round early due to over-subscription so it is advisable to pledge your investment right away to avoid disappointment

Any investment carries risks which you should be aware of, Crowdcube offer a good insight into risks and investor profiles here.

Why should I consider an investment?

As well as owning shares in one of the most innovative digital media companies in the UK, investing in 1854 Media means supporting photographers worldwide, by helping us open up more avenues for inspiration, exposure and paid work. It means investing in and supporting the artistic pioneers of tomorrow — which could be you, or someone you know.

Lots more information is available on our investment page, where you can watch the four-minute video and register to download the business plan and hear more about the opportunity. 

Invest today