Thursday, 13 July 2017

Could this happen?

There is a tiny whisper, almost inaudible, that one of the major ECF platforms has eyes for another one. 

Seedrs are about to embark on a new funding round and rumour has it it will be a big one. Big enough to take down Crowdcube. So they say.

Well we dont need both and of the two, Seedrs is the more sensible option - it's not flawless but it is better. Far fewer disasters than Crowdcube, less scandal than Crowdcube; generally a better bet all round.

Here's how you can help. If this is a result you would like to see and god knows we all want Crowdcube to fold, then start voting with your feet. Invest in Seedrs pitches or one of the other platforms, but avoid Crowdcube. Without the ultra loyal shareholder investors I think CC would already be struggling. Cut their supply of investors and it's over. Quite apart from the obvious logic of avoiding the Crowdcube model with all its flaws, you might even make some money. It's in your gift.

Two of Seedrs senior management team started following us today, so welcome. Better late than never. 

We still think your model has issues and the whole sector has been set up on flawed ideas, but this outcome would go partway to getting things right.


  1. Vote with your feet but not, in my view of their accumulated losses, for Solillas.

    Think I will stick to offers on Seedrs which do seem to have better financial info available.

  2. Also be aware that Seedrs will take 7.5% of any profits you make, Crowdcube don't levy anything on your profits. If you judge yourself capable of making your own investment decisions and carrying out your own research you might feel that Seedrs supposedly better due diligence process is not worth a significant chunk of your gains.

    1. We have heard all this before. There are no profits with Crowdcube - you use the wrong term actually as it not 7.5% of profits they take but uplift.
      Anyway the game CC play is the never never carrot on very long stick game. If you invest via CC then maybe you need a few lessons in investment decisions.

    2. ps of course you rather miss the point of the 7.5%. As Seedrs operate a far more hands on nominee system, this pc covers costs or might do as its only taken out of the uplift. Thats why Seedrs have far fewer scandals and disasters - although not free of a few. IMO you are far better losing a tiny pc of the good gain than seeing no return at all and all your money vanish. I actually prefer the other models like SR and Growthdeck.

  3. I would let Crowdcube keep 50% of the profit if I ever made a profit from my failed investing.

  4. "Big enough to take down Crowdcube."?

    I'd expect any reasonable interpretation of that to raise serious competition concerns. Is ECF completely below-the-radar for the competition authorities?

    FWIW, I've always voted with my feet in avoiding crowdcube. Even before I first encountered this blog. Not because of their due diligence, but because there seemed to be too many potential risks over and above the risk of failure of investee companies. I have a few seedrs investments, including one that's already in administration but that you've never featured here (Mitonics).

  5. the funding round has begun -