Tuesday, 9 February 2016
Crowdcube accusation is very serious.
So now we know, Kelvin Mackenzie has direct experience of the Crowdcube shuffle - the move that makes pitches fully funded on the platform.
Mackenzie, now an entrepreneur, was directly involved in a live pitch where he claims Crowdcube performed their magic.
We would love to hear from Crowdcube apologist David Prosser, who has defended the platform with great courage up till now.
Crowdcube deny any wrongdoing which is their default position but it seems impossible for them to be believed. Mackenzie claims he was part of the pitch on the platform that experienced this shuffle - why would he make this up?
See here for a piece in the Times we helped with http://www.thetimes.co.uk/tto/money/article4686065.ece
Having studied Crowdcube and their methods for 4 years, we are sure that these claims are real - we know from our own experience that pitches can line 'investors' to drip money into the campaign over a steady period instead of investing once. This creates a false momentum, which is misleading and therefore against the FCA regulations.
This is not exactly what Mackenzie is claiming; his claims are even more serious. But it seems highly likely that once you have bent the wire once you will step over it again and again until a new fence is erected.
Just look at the way the platform dresses up pitches, allows grandiose claims to be made which turn out to be nonsense and misses out important information that might put investors off. Even the description of their own CEO is far from honest - why would anyone trust these chancers?
Where in all of this are the FCA?
There will be more.