Popular tech startup Nothing, founded by ex OnePlus co-founder Carl Pei, has announced that it is opening the company to a community of investors through crowdfunding. Known as “Community Investment 2”, this round of investment will start on April 05. Interested people who want to invest in the company can pre-register on the Nothing website. In this article, we will talk everything about Nothing community investment including what exactly it is, how can you invest, what you get after investment, and more.

Nothing Community Investment

As explained by the name, this is round two of Nothing’s community investment. Earlier, just before the launch of Nothing Ear 1, the company raised $1.5M from round 1. Now, ahead of the launch of its first smartphone, Nothing Phone 1, the company has announced round 2 of investment, and this time they are targeting $10M.

 

So what is this community investment, what are its benefits, and how one can invest in it, let’s try to find these answers here?

What is Community Investment or Crowdfunding?

Community investment aka equity crowdfunding allows anyone from the “crowd” to invest money in a startup, early-stage private company, or an unlisted company (a company that is not listed on a stock market). And, in exchange for their investment, they get a share, or equity, in that company.

What do I get after investing in Nothing?

After you invest, you become a stakeholder in Nothing, which basically means you will own a part of the company. Apart from this, Nothing is also offering a range of exclusive rewards to the investors alongside the equity. The company will share more details about these rewards once the funding platform opens.

Who can invest in Nothing?

Nothing will accept investments from anywhere in the world unless your local laws prohibit you to invest in such entities. Apart from this, in order to invest in Nothing, you must be over 18 years old as of the date of investment. Moreover, you can check your local regulations for additional restrictions in your country.

I am based in India. What should I do if I want to invest in Nothing?

First of all, you should note that the Financial and Regulatory laws of India do not permit investments through crowdfunding in an Indian company. So if you are interested in investment through crowdfunding in a company outside India, like Nothing, in this case, you may seek advice from a lawyer or CA.

How can I invest in Nothing?

The first step to start investing in Nothing is to sign up on Crowdcube, which is a platform for crowdfunding. When Nothing’s investment page is live there, you will have the access to invest in the company before the rest of the world. Once the round of investment closes, you will be a Nothing stakeholder.

You can pre-register on the Nothing website and you will know when the private page goes live on Crowdcube.

What is Crowdcube?

Crowdcube is a platform for early-stage businesses to attract investment from everyone including venture capital firms as well as everyday investors. The platform is regulated in the UK by the Financial Conduct Authority. It is currently the world’s largest crowdfunding platform and has facilitated crowdfunding for many companies like Revolut.

So, when you invest in a business using the Crowdcube platform, your shares are held on for you by Crowdcube Nominees Limited. Once your investment processes and Crowdcube collects your payment, your investment documentation is shared with you.

How much money can I invest in Nothing?

You can start investing with as low as 51.3 USD for now. There is no maximum limit of investment prescribed by the company.

Is there any additional fee for starting investment in the company?

First of all, you can join Crowdcube’s investor community for free, and there is no fee for that. However, when you make an investment on the platform, a fee of up to 1.65% of the amount invested is applied. The investment fee is outlined in the investment process and the minimum fee is £0.50p and it is capped at £250.00 max. The fee is collected when the investment payment is processed by Crowdcube.

How the investment in Nothing will work?

Via Nothing community investment, you will be investing in WAGMI Limited, formerly known as Nothing Holdings. It is a Cayman Islands company that is the parent company of Nothing. So this means you will indirectly invest in WAGMI Limited and own a part of this parent company. However, under the Cayman Islands laws, this might have a different meaning, so read all the documents before investing.

How will I make a return on investment in Nothing?

The return on your investment in Nothing may come via events like a trade sale or an IPO (Initial Public Offering) launch. If Nothing’s products become successful and it is bought by another company or the company goes public at a higher value than it was at the time you invested, you’ll surely get a return on your investment. However, if the company fails, you may also lose some or all of your investment.

Investing in startups and early-stage businesses like Nothing involves high risk including illiquidity and loss of investment. So you should invest at your own risk in Nothing. Also, don’t forget to check your local regulations before investing.

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