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Wednesday 3 August 2016

Yet another Crowdcube pitch with misleading information - is a mess this large really possible?


They just keep coming. We are told that Crowdcube have revamped their DD but that must be just another Crowdmyth.


Dock of the Bay are about to fail spectacularly to raise money on Crowdcube. 

Firstly this begs the question, if as CC continually claim, they refuse to take 75% of the companies that apply, how did they let this one get through?

Secondly and this will now come as no surprise, the information vetted by Crowdcube and then presented to the public as verified, is wholly misleading.

It states in the first few paragraphs of the pitch that DOOB has been 'established' for more than 5 years. Yet we learn from the forum that DOOB has been a non trading company until 2016 - so it has not been established as anything apart from a name on a page for more than 8 months. The main trading company Gtem International Ltd was incorporated in 2007 and has made steady losses; not that you would get that impression from the pitch. We also learn that the founder has a 'wealth' of 'experience' in this sector and we are told, he was the founder owner of Moorcroft Lifestyle Ltd which produced one set of accounts and was then dissolved via administration.

A wholly owned subsidiary of Moorcroft Lifestyle, MC Lifestyle Ltd, of which the same founder was a director, was closed via a Court Order. If its fine to quote the good news in the pitch, why not include the bad for balance. Well the answer has to be that bad news doesn't sell equity and then Crowdcube dont get their commission. Meanwhile, the FCA carry on snoozing. 

Is it possible that the whole of the CC OTL Dept has been on holiday for the past 3 months - clearly no one checked any of this utter drivel. Whilst none of the information is critically wrong and no one has broken any laws,  it is a very slapdash approach and is misleading Why should Crowdcube members be forced to find these things out or as in many cases not find them out until it is too late?

Do investors in the Crowdcube platform, looking at this pitch and its half hearted DD, really believe that the platform can deliver a sustainable level of profit to make them worth anything like £65m? 

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