Not how investing in startups should go long term

EDIT: First of all, let me preface this by saying I love finary app and the team. Please read this with an open mind though.

This isn’t how startup investing should go. I clicked on the link and immediately saw people investing after a couple of minutes. This means they didn’t read any of the shareholder agreements (i.e what they actually are owning…)

Investors should not be piling into a stock with FOMO and not even reading the shareholder agreements or pitch decks.

Given how this was an email link as well it was VERY susceptible to phishing.

I.e I could have easily set up a fake crowdcube website and emailed all finary users before 9am and would have scammed many thousands of euros because people are too anxious on not missing out.

In future I think finary should handle this better by not doing first come first served or upping the investment amount imo. It is creating an environment where potential shareholders are going to get scammed.

I’d rather companies didn’t raise than do this tiny raise that investors rush into and potentially get absolutely screwed on.

I’m very bullish on finary and I know YC has backed them but ffs rule number one of investing is that YOU READ THE DAMN SHAREHOLDER AGREEMENT.

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Let me guess: you didn’t manage to invest? :smiley: FOMO or not, it’s a positive news for Finary from people who believe in the project.

There will be more rounds I guess, this time Crowdcube should be ready.

When the company is funded on crowdcube, you have one week to read the shareholder agreements and if you want cancel your investment.

EDIT: Help Centre (crowdcube.com)

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That’s the wrong way round.

You should read first then invest. Not invest then read :slight_smile:

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Right. Well maybe next time I will set up a phishing website and scam lots of Finary users who have FOMO?

Because this is exactly how scams happen.

Do you think YC invested in finary without reading the shareholder agreement?

I’m not saying it’s a bad investment to do in finary. I am saying it’s not good to do this for multiple reasons in general.

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I agree but in the case of crowdcube it’s just a promise of investment. You gonna pay if you choose to invest after a 1 week cooling period. It’s made to remove the FOMO effect

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Or maybe a scam is illegal and you should not do it?

The people who invested in Finary at the time of this raising already knew the objectives and the roadmap, they followed many live meetings having for purpose to explain all these things.

If you are relatively new then I understand your surprise, but this community was not created in 1 month.

Furthermore, we had been warned about the site beforehand to find out about these conditions, and were also made aware that places would be limited.

We also trust Finary to take care of us in this kind of event.

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Just because somethings illegal doesn’t mean people won’t do it. That’s a foolish response.

Companies have a responsibility to not let easy scams like this happen.

I won’t do this but I am demonstrating to finary how easy it is to do.

There is difference in suggesting that something will happen and offering to do it :man_shrugging:

I invested in Finary because I believe in the product, but yes, this was ridiculous.
Investing should not look like buying Pokemon cards.

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i was saying it in hyperbole. I’m trying to get across how seriously vulnerable this is to finary mangement reading this post.

I just think they should change it for next time so that it doesn’t produce this rush-to-buy affect. Many ways to improve it.

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It’s a crowd investment. Of course something like this was coming. If you have another solution you can create your own Crowdcube

The solution is many.

Number one: Do not send out emails to crowdcube to users as bad actors can imitate them and do phising links just before the real email is sent. Finary should have done an internal link from the finary app to crowdcube and stated this many times to avoid phising.

Number two: Finary should have released pitch decks and agreements 30 mins before the start of investment round was open to allow retail investors to fully understand what they are buying. I don’t know if this is crowdcube issue or finary but either way it should be done.

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Personally, I didn’t use the link provided by mail, I just refresh the crowdcube opportunities page (sorted by newest), and see Finary appear at 9. That’s the golden rule to prevent phishing: don’t click on link, go yourself on the website (ideally using bookmark).

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For me the biggest mistakes they made was the unprotected link and the useless hype buildup they did since january

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Yeah, I double checked the url multiple times instead.

But a lot of people are not technically literate enough to know this.

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30 mins it’s not enough. You need 1 week minimum for me

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I personally agree but I remember they said they didn’t want to release early due to Legal stuff or something.

Not sure if that’s a valid excuse but yeah, the longer the time frame investors have to digest the information the better I agree with you.

that’s why crowdcube set up a cooling period. You can review your invest after the hype. It’s not perfect but a good compromise