This is not a game and if platforms cannot be trusted to ensure that their pitches give investors ALL of the relevant information, then the FCA will have to step in.
Faction, a Crowdcube pitch we have mentioned before here, was due to launch an important new product this Autumn. This was a collaboration with Quicksilver in the USA. Quicksilver filed for bankruptcy in the USA a couple of months ago.
None of this information is in the Crowdcube pitch, which is rapidly heading to its completion target of £500k. Is it relevant?
Well yes of course it is - it says lots about the management team at Faction that they could hook up with an outfit that was by all accounts on the ropes and is now owned by its creditors. We understand that the deal included a development of Quicksilver's ski range, Roxy, in collaboration with Faction or put more simply Roxy were licensed to produce and brand Faction skis. Surely this information is to be considered important to potential investors in Faction.
The only reason that this has come to light is because a question was posted on the pitch forum. To be fair to Faction they have given a lengthy and considered response although we feel it errs on the side of over optimism. If no buyer is found for Quicksilver or the new buyer ditches the Faction deal then investors will most definitely be effected. The pitch is almost completed and 99.9% of those investing have not known about this.
It is just another example of investors being treated no better than cannon fodder. They need ALL the information to make a decision where caveat emptor is the rule.
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