Monday, 23 March 2015
Crowdcube's Ovivo failure.
Ovivo raised £500,000 on Crowdcube in 2013. By the beginning of 2014 it had gone dramatically and very suddenly bust.
Ovivo tried to run a mobile phone network, giving subscribers very tasty rates. Their contract with Vodafone was not upheld however as they failed to pay the bills. The lights went out leaving the management to post the pathetic excuse that they had been forced to close due to circumstances beyond their control. We assume they meant the ability to run a business.
As usual Crowdcube PR'd the £500,000 raise to death and then when the lights went out, the 'success' disappeared from the Crowdcube site.
It might have been more honest and would certainly be of more use to put an open and frank analysis on the site so that future Crowdcube investors would be able to judge how this catastrophe occurred so soon after raising such a large sum of money.