Tuesday, 26 July 2016

Crowdcube's £40m of pledges turns out to be pure fantasy - Unincrowdable!!

Crowdcube went to town on their rapidly rising pledges before they launched their latest cash grab. Now we know it was all PR

We all used to believe that the world was flat. In those days, we had the excuse that no one knew any better.

Now we find similar fantasies gaining credence through sheer stupidity.  

Crowdcube may be very bad at most things but to give them their due, they are very good at suspending reality - that's Luke Lang's forte. The PR behind this latest cash grab was excellent. Well I'll rephrase that - it was excellent unless you think a company like Crowdcube, which is taking investments from the public under the guise of FCA authorisation, should behave with a modicum of  responsibility.

Crowdcube were shouting from the rooftops that they had pledges amounting to £40m or was it £50m. Now the raise is live, it is very stuck at below £7m. Hmmmmm. 

The pitch forum is getting a little cluttered with real people asking really very difficult questions. Have a read, it's like some people have finally woken up. You get the odd believer comparing them to Amazon but there is most definitely a move to find out some of the facts - at last. 

To get to the point where they will arrange to facilitate existing SH's selling their shares as part of this offer, they have to exceed £12m. We are watching with interest. When might they get another chance to cash in?

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