Why are you doing a crowdfund
Back in December we briefly mentioned that we were about to begin our series A investment round to accelerate growth of Travala.com which was always the plan. (It is normal for a business to do multiple rounds of investment selling equity shares in their cycles of accelerating growth). When we mentioned it, we got several messages from the community asking if they could take part and become shareholders of the company just like the Venture capitalists and accredited investors, we were targeting with our Series A round. The amount needed to be invested in a private round sits high at $100,000 and this route made it non-accessible for community members, so we began looking at crowdfunding.
Crowdfunding enables us to give the community and those who want to become shareholders, the opportunity to do so. And to be clear, those shares not sold to the community will go back towards the series A round for accredited investors and Venture Capitalists.
Of the total shares of Travala Limited, we are looking to allocate 5% of these to the crowdfund. This amount can be increased depending on the interest from the community.
There is no obligation for Travala to run the crowdfund, this is a gesture by us and is completely optional. We have listened to community members and adjusted our plans.
Where will the crowdfund take place?
Crowdcube.com — Sign up and get familiar with the site, Crowdcube has seen many large and established brands go through its system since it began. CrowdCube has our trust and fits perfectly with our specifications needed for Travala Limited to open its doors to the community for share allocations.
Additionally, Crowdcube will also give Travala.com more exposure as this site has great traffic. This is a huge benefit again for Travala.com, as more exposure means more bookings.
Terms of the crowdfund
We are still in the process of defining the crowdfunding campaign. Community members will have early access to the limited number of shares allocated. In order for us to understand the volume of interest, we request that you fill in the survey HERE.
Additionally, we are finalising the company valuation based on our growth projections, once completed we will release the cost per share.
What does it mean if I become a shareholder?
We will define the exact terms of the shares available over the coming weeks once the legal team has set all in motion. Those who participate in the crowdfund and become shareholders can expect dividends on a yearly basis when the company makes profit.
Minimum investment size?
Crowdcube allows users to participate from as little as £10 GBP ($13 USD).
Can we pay in crypto for the crowdfund?
No, this is not possible. Crowdcube doesn’t allow this method of payment, you must use fiat (credit/debit cards).
What will happen to the usage of AVA?
So firstly, Travala Limited company shares and the AVA utility token are completely different and must be separated in your mind.
AVA has the same functionality within the platform as previously defines within our recent updated business plan. As more users come to the platform and make bookings, more AVA tokens will be tied up within the system. Thus, more AVA will be needed as we only have a limited allocation from the reserves. There will come a time where a buy back for AVA will be put in place, if the holders of the token don’t bring the AVA back to the platform to replenish the reserves.
As you know we are currently building out the platform and we can now confirm we have completed the R&D stages of the AVA Referral program. We will have the production version released by mid-2019 however we aim release the beta version beforehand according to the roadmap.
With the capital from the series A investment round and crowdfund we will be accelerating growth exponentially to add more users and bookings to the platform.
Can we get paid dividends in AVA?
No, that’s simply not possible. As a shareholder, dividends would be paid directly to yourself in fiat to your bank account.
Plans for funds raised
We will be using the funds to push forward with plans for accelerating growth of Travala.com, listing on global comparison sites such as Kayak.com and driving online paid marketing strategies through sites like, Google ads or Facebook to increase awareness, reach our target demographics and increase bookings made on the Travala.com platform.
We will also be increasing the team size within the following departments; development, marketing, customer service and operations.
Why not an offer shares as a Security token.
Quite simply it makes little sense for a business within our industry bridging the grab between the blockchain and traditional space. Here are the following reasons why;
- Offering of a token limits those who can invest — As the crowdfund is only a small part of a much larger raise, the Venture Capitalists and accredited investors targeted are not operational in the blockchain space nor do they want a token. Additionally, Blockchain Venture Capitalists aren’t currently investing, again adding to the limitations of a security token.
- Globally there is barely any regulation in place for security tokens. As much as we see influencers discussing Security tokens over the past 3 months, this doesn’t mean the world is ready for them.
- In our vision Travala has a far greater reach without a security token. A Security token would limit the projects ability to grow.
- We aim to go live with the crowdfund in March 2019
Make sure you completed the survey for us to understand the volume of interest — https://goo.gl/forms/g7BRkPoXl9lxh2Kr2
A Limited number of shares are being allocated to the crowdfund based on the responses we get from the community. The sale will be completed on a first come first serve basis at the time of launch.