Wednesday, 27 July 2016

LSE being used by Crowdcube

We had forgotton about this - a report from the LSE on Crowdfunding and Equity Crowdfunding.

We were reminded of it recently as Crowdcube chiefs keep on using the piece in their latest cash grab forum, as proof that they are not the crazed money grabbing. money burning platform some of us think they are. 

The problem is, as with all things Crowdcube, it's a stitch up. Crowdcube gave the LSE access to two years data and the report works on data only from that platform. So do we think, given Crowdcube's solid history in manipulation, that they did this with an agreement that the results would be published however critical? Do we think the researchers having spent two years working on this report, are going to criticise their host?

And to cap it all, there is no mention, not a thing, about a single failed business that has funded via CC or of the dubious methods sometimes used to get that funding. You have to wonder why?? 

As usual with Crowdcube's management, when they tell people again and again to read the report, they dont tell them that its totally subjective. They're at it again.

As an aside, it strikes us that comparing Crowdcube to Amazon as one existing investor has because Amazon didnt make a profit for 20 years, is like saying Amazon didnt deliver anything for 20 years - they just took orders. Crowdcube have not delivered ROI and do not look likely to. When the business pitches are poor to very poor, is it any surprise? They are funding duds. 

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