PIWORLD interview: Reg Hoare - Diversifying your portfolio with crowdfunding platforms

Reg has been dabbling in crowdfunding opportunities, about 50% of which are EIS opportunities. Here, he outlines how a few glasses of wine got him interested(!) and his subsequent journey. Not without risk but worthy of understanding these private equity type opportunities which are now accessible to all investors. Generously, Reg shares his experience for us all to learn from.

*The day after recording this interview, Nutmeg announced on 17.6.21 they are to be purchased for £700m by JPMorgan Chase, a nice windfall for Reg and more than 2,000 investors who invested £250m through Crowdcube in 2019.

00:50 What is crowdfunding?
01:25 What drew crowdfunding to your attention and how did you get involved?
03.21 What’s the difference between this or Kickstarter or investing in VC Fund?
04:30 What is in it for the private investor?
06:57 What are the downsides?
09:12 What sort of return are you hoping to achieve?
10:35 Can you see what large holders are buying into opportunities?
13:07 What percentage of your portfolio would you put into these crowdfunded opportunities?
14:14 How do you view the risk?
15:26 How quickly do you expect to see a return on the investment?
18:14 Exiting
22:44 Access to management
24:04 How do you select investments?
29:30 How much investor information is there on crowdfunded opportunities?
32:16 How do you value the opportunities?
36:03 Market cycles
38:52 The pricing of the offer
40:18 Success rate
43:30 Market sectors

About Reg Hoare
Reg is a Managing Director of Engine MHP Communications, the leading Financial & Corporate PR firm where he specialises in advising mid-market companies, from FTSE 250 to AIM 100. He has over 35 years’ City experience including a decade in investment banking and securities. In his spare time, he is an active private investor, managing his own SIPP and other investments.
Reg can be followed on Twitter @reghoare