Are Crowdcube and Lovespace giving us all the facts?
This question was recently posted on the Lovespace pitch - we think it asks some very good questions not just of the company but also the way the platform has 'organised' the information it presents to investors -
Ccube, a bit disingenuouly IMO, is referring to this a Lovespace's second round in its communications. In fact, as I think you have acknowledged, there have been at least 2 other rounds in between, so this effectively round 4+ since the first Ccube round. Acknowledging that most investors will have knowingly invested in B shares, I presume that there will again be no guarantees for investors who would otherwise wish to follow on their investment this time so material dilution should be expected/factored-in?
Having been shut out completely of the funding round which followed the first CCube raise In your communication to existing B shareholders at the time of the next funding round in November 2015 to raise £1m (with just over £500k committed at that point), Steve Folwell made it pretty clear that you were only interested in hearing from investors wishing to invest £25k+ for new A shares. If you were apparently so loathe to accept smaller investments of less than £25k from B existing shareholders in November 2015 why are you back now? Thanks.
We'll let you know the response.
I think it would not be unfair to say that all small investors under the CC model may suffer the same fate - or worse.
I think it would not be unfair to say that all small investors under the CC model may suffer the same fate - or worse.
This is my biggest concern with the CC model. No pre-emption rights are guaranteed because they don't use a nominee structure like Seedrs or Syndicate Room - unless the company pitching is offering A shares to all (which is very rare).
ReplyDeleteAgreed but there is plenty of evidence that both SR and Seedrs are quite happy to brush aside the pre emption clause when push comes to shove ie in the interests of the majority SHs - so is it really worth anything?
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