Bereft of good news, Crowdcube have managed to spin a negative story into positve PRing.
This is a masterclass in shadow boxing and when Crowdcube go bust, Luke Lang is guaranteed a job in front line politics.
So here's what they have done.
A while back they made a lot of noise about being the leader when it came to developing the use of ECF for IPOs. Now they have pulled this idea or possibly the LSE has chosen not to grant them a licence. Either way, Luke Lang is to be found telling anyone who will listen how Crowdcube have chosen to avoid IPO's because there is no money in it and the IPO market is sluggish.
You can accept the second point as being cyclical but the first point just shows that previously Lang was, as usual, just shooting the breeze to catch attention. The fundamental mechanics of IPOs have not changed so Crowdcube clearly got their sums wrong - if they did any.
In the same article, http://uk.businessinsider.com/crowdcube-shelves-plans-ipo-market-economics-god-awful-2016-5, you can find Syndicate Room's CEO rejoicing in the fact that Crowdcube have missed 'his vision'. Luke Lang jabs back that he is afraid for his competitors - what a nice thought! Round 1 to Crowdcube
We think that it would be a nightmare for Crowdcueb to be allowed near IPOs. With their simply appalling record on due diligence and their reputation as the Woolworths of the ECF sector, it would be asking for serious trouble to allow them anywhere near to the official markets.
So well done Luke for finally getting something right.
Haha, you are so biased... no word on the ridiculous valuation of SR's own round, the lack of financial information, the alleged 'spontaneous' investment of 1m GBP ....
ReplyDeleteOh dear, a Crowdcube employee? We were not writing about SR but about CC's fantastic non stop PR machine. Why does Crowdcube employ such young slightly dense people? SR have their own problems and we have written about those on other posts.
DeletePS - if you wish to keep posting here you will need a name - hiding behind Anon is a little puerile.
DeleteThanks for confirming, that was exactly my point... you were not writing about it although this seems a prime example how crowdfunding should NOT be done ... nor any post about the big success that Cell Therapy just reported.
ReplyDeleteThe blog is the blog. I have now put out a short piece on SR's raise - not really very interesting which is why it hadnt been done before. Re Cell Therapy their sale of their rights to a Japanese company so that this market is now closed to them may have brought in much needed cash to the business but is it really in the interests of the shareholders? We will have to wait and see and then I may write a piece about it. If you dont like what I write then please dont waste your time reading it.
DeleteDid you see Crowdcube's own accounts? They lost 4.8m (with 2.7m revs) in 2015. It's ludicrous that they worry about the profitability of their competitors after having most likely the biggest loss of them all :-D
ReplyDelete