Tuesday, 25 August 2015
A classic but untold tale of Crowdfunding
We wrote about Waterbabies a while back - http://fantasyequitycrowdfunding.blogspot.co.uk/2015/03/the-truth-is-simply-whatever-you-can.html
The musical flopped on its first outing having raised what was then a record £1m on Crowdcube - although there was evidence that the platform had dressed the pitch up to make it look more tasty. The reviews are well worth reading if you like a laugh.
The company, Water Babies Music Ltd is still in liquidation and not yet closed. The most recent report from the liquidators shows zero assets with £120k due to creditors and over £1m lost by shareholders - many of whom had invested over £10k.
What we find odd about all of this is that you cant find this information anywhere - no news stories, no Crowdcube PRing as with the E Car Club sale. Nothing. Just silence.
We think that lacks a certain balance and a certain honesty.
Many Crowdcube 'successes' have now closed, losing investors and creditors in the region of £4m. One small success, made investors £1m and it is headline news.