Why buy equity shares in BABB?
BABB is holding an equity crowdsale to give the community a chance to own equity in the company and raise money to fund the minimum capital requirement for the banking license.
When you invest in BABB, you’re funding the banking license and you’re also buying a chunk of the private company, meaning you become a direct shareholder. Being a shareholder comes with various perks.
We are selling 2.91% equity based on a valuation of £50 million. All equity sold will be in the form of ordinary (A) shares in the company, which entitles you to…
- Ownership rights (two shares in BABB per £1 invested)
- Voting rights on key strategic decisions such as appointing a chairman of the board (one vote per share)
- Access to possible future dividend payments based on company profits (please note that we have not committed to pay dividends)
- Return on investment in the future (more details below)
Why invest in BABB?
There are two main reasons why you would invest and buy equity in BABB
- You like the project and want to see it succeed
- You’re optimistic about the future value of the company, and therefore the future value of your investment
Equity versus BAX
Equity investing is different to buying tokens but they are both integral to the future of the company. Rather than choosing between them, it’s best to have both! The main points of difference between BAX tokens and shares are…
- Shares are a legally recognised investment in a regulated entity (BABB Group Ltd)
- Shares entitle you to a return if and when BABB goes public or is bought by another company, but they’re not fundamental to the operation of the platform
- BAX is a utility token which underpins the operation of the blockchain platform, but owning BAX tokens doesn’t guarantee returns or profits
- Shares are not publicly tradeable because BABB is a private company, meaning you can only swap or exchange your shares privately.
- BAX tokens are liquid and fully tradeable at all times.
BAX and shares are both equally important ways for the community to have a stake in the BABB project and ensure its success. We are happy to see BAX holding its own in this bearish market, and delighted to have welcomed thousands of new token holders since the token sale.
We want to reward all our early backers with a bit of extra BAX, and we also think it’s important for all equity investors to own BAX ahead of the product launch. That’s why we’re offering…
- BAX bonus for the private round — get 40 BAX tokens for each £1 you invest on CrowdCube (minimum investment £100); and
- BAX airdrop for everyone who participated in the token sale, and all equity crowdsale investors.
For some equity investors, BAX might be their first encounter with crypto-assets. We’re very excited about this opportunity to introduce our project to a whole new audience.
Getting your money out
Making an equity investment is a commitment. Unlike buying shares in a public company, which you can trade any time, buying equity in a startup means you can’t access your money until the company exits or your shares are bought by another investor or the company itself.
There are a couple of ways you might get a return from your investment in BABB:
- We take investment from a VC firm who offers to buy out some (or all) earlier investors
- We are acquired (bought by) a bigger company
- We become a public company via an Initial Public Offering and list our shares on the stock exchange
- Company buyback, in which BABB gives you an attractive offer to purchase your shares in the company
If any of these things happen, you’ll make a profit from your initial investment. Various companies have raised investment through CrowdCube and gone on to exit the business and generate a healthy return for their investors.
For example, Camden Town Brewery was acquired just eight months after its CrowdCube raise, and this sale delivered ‘a multiple return’ to its 2,173 investors.
At this stage, we can’t tell you which exit will happen, so we can’t tell you exactly when or how you will get a return on your investment. However, as with every other aspect of the BABB story, we will keep you fully informed of our progress at all times.
Register to invest
That’s the end of the fine print. It’s decision time. If you want to invest in BABB and own equity in the company, you know what to do.
Questions? You can join our equity crowdsale Telegram group or email us at crowdsale@getbabb.com.
