Ethos Global, forced into liquidation by the Courts, and their funding facilitator Crowdcube, are trying to dismiss the closure and shenanigans that led to it, as nonsense. What really lies beneath the surface may be far worse then we thought.
Cambrdige has a bit of record with Crowdcube. There is of course this on going case but not long ago there was the confirmed fraud of the Solar Cloth Company. The SCC was run by a Cambrdige resident who was using various different spelt names to hide his business failures - a simple fact that the Crowdcube DD department missed. Result - the loss of £1m of investors cash plus a whole pile of creditors being out of pocket. Only two companies made any money out this farce. They were Crowdcube with their commission and the insolvency practitioners.
Now we have another Cambridge farce; Ethos Global. The truth is proving hard to come by but a recent source told us, that the scandal is far worse than it appears. The company was apparently already struggling before Crowdcube and was in dire straights. That's not all the source said but the rest needs some verifying. QED - when they approached Crowdcube and were vetted by them , they were already in a lot of trouble. If true, can Crowdcube really be allowed to keep their FCA license? What is the point in having any regulation if it can be so blatantly abused with no sanction.
As with the Olympics, where they should just let it be a free for all and see who blows up first on the 100m, no regulation is better than regulation poorly enforced.
We think that Ethos Global marks a new low in the many lows of the development of ECF as a credible long term channel for SME funding. If not here, then where will the FCA draw the line?