Tuesday, 14 November 2017

Crowdcube Success Doorsteps are totally clueless

There is something very odd about the recent raise by Doorsteps - the online estate agent run by a teenager.

Firstly, when the pitch was live, the founders made a big deal of a potential very large investor coming on board. Such was the importance and likelihood of this, that the platform allowed the pitch, which was already over funded to 140%, to extend its campaign.

So the original target was £400k. The pitch got to over £550k and then the extension opened. 

If you check the pitch on Crowdcube, they finished at £395k. 

So under the original £400k and well off the £550k plus they appeared to have hit. Where was the large investor? Fictional? What happened to the extra £150k? And what happened to the rule that if you dont get to your total, you get nout?

This was all happening back in August 2017.

Now on the 14 November, the filings show little or no evidence that Doorsteps or Upside Capital Ltd, has raised much at all.

A SH01 filing dated 6 November, states that the company allotted 495 shares for £1 each. IE they gained £495 in cash from investors. It also states that the total allotted at this date (6 Nov 2017) is 12m. There is only one class and they are A shares. So CC shareholders bought 0.0000412% of the company for £495. That certainly isnt the deal Crowdcube are promoting.

You may remember we had the same problem with Vita Mojo recently - see here. How many more filings have been hopelessly misfiled by Crowdcube since 2011??

There is more.

The company's filed Confirmation statement made to June 7 2017, shows the total allotted shares as 100. So how it became 12m only a few months later with no new filings in between is a mystery.

Obviously all of these filings are total make believe. But they need correcting or CC shareholders who thought they were buying real shares in Doorsteps will end up with dust. It's evident that Crowdcube interns 'helped' Doorsteps create this fantasy. 

It really is not difficult to get all of this right. But it does seem it is beyond Crowdcube. And what does it say about a company's abilities that they cant get something as simple as a filing correct. 

5 comments:

  1. u don't have to get the total amount you are raising. when we tried to raise with crowdcube we were told not to worry because if we got to 90% or so they would close the round regardless as it was in their terms that they could do that. unfortunately for us we didn't get there.

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  2. Interesting that that is what CC told you - not sure the FCA would agree! Minor point anyway in regard to this post which is more about the total cock up CC have made of these filingsand why £150k disappeared from this campaign??

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  3. What does hitting the target have to do with the FCA?

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  4. Quite a lot possibly. Depends on why the £150k went west - was it a deliberate wheeze or just bad luck?? It wouldnt be the first time that a wheeze has been used on the Crowdcube campaign to con investors.

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  5. I don't know of any ruling by the FCA that says that you have to reach your funding target on an ECF platform in order to fund. I think it's just a policy the sites use, rather like the Dragons Den. As for the £150K, maybe a big investor pulled out, or maybe a lot of people didn't like the Articles, but either way, I don't think that makes anything illegal, if that results in a funding below target. The only one I have ever known which initially met its target but was then pulled, was Estates Direct.

    As this blog has a general readership, it may be worth pointing out the relevant regulations when you mention the FCA.

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