Wednesday, 2 March 2016
Yet another Crowdcube funded business goes under with dubious figures in the platform's pitch.
Compare and Share funded via Crowdcube in 2014. It was intended to be an on line car sharing facility; we think.
There was much hullabaloo over the pitch as it was the first to raise 3 times its target -. in the end it finished with £157k from 151 investors.
Now the company has closed. It would appear from the letter sent around to investors that the departure of the CTO, combined with critical cash shortages, has put paid to it.
The last filed accounts to YE March 15 showed equity funds were way short of the figure given in the Crowdcube pitch, £170k filed against the Crowdcube figure of £241k. According to Crowdcube, fresh equity funding totalling £227k was due in in 2014; the £157k above and then more.
The more never arrived.
This would explain the cash crisis.
But why again do we have figures in a Crowdcube pitch which are blatantly incorrect? The losses for the year were higher than predicted but yet again Crowdcube have allowed a pitch to use dates in their pitch that do not match up to the filing date at CH - so a direct comparison is difficult.
Oddly in the closure letter from 'The Board' there is no mention of this equity shortfall - someone should ask them about it.
This is hot news in that it's not yet registered as closed at CH. Thanks go to our friend for forwarding the closure email.