Yet another Crowdcube funded company comes off the rails within 24 months of funding. This Blog warned would be investors at the time that the claims made by the CEO were far from transparent.
To quote the email sent to shareholders - ' Unfortunately, due to the previous leadership the business has reached a precarious position.' IE it's insolvent.
It had spent all of the £134k it raised on Crowdcube in 2015 and more by the end of 2015. In 2016 it was due to be turning over £1.23m with profits of £294k. In fact it only achieved just over £80k in revenues, with a small loss of £8k,; cut back from the £150k it lost in 2015 when it received its lovely lolly from 133 investors.
The leadership that is roundly blamed for this shambles is one Mal McCallion, who is described in the Crowdcube pitch thus -
Mal was involved in the launch of two very successful property technology start-ups, Zoopla & Primelocation. He has spent 15 years immersed in UK property tech.
That hardly sounds like someone who would place the company in such a precarious position by accident. Mal resigned a while back and we wrote about this here and here whilst the pitch was live and in fact told investors that the claims made on the Crowdcube pitch were dubious...at best.
Crowdcube must be held accountable for this misinformation - it was after all a prime part of the pitch they vetted and published under their FCA license. But of course they wont be. And so it goes on and on and on ......................................................................