Estatesdirect funded via Crowdcube in 2014 and then in 2015 claimed it had raised £1.25m on Crowdube
Well it seems that the 2015 raise, although completed on the platform never went through.
The main man behind this fund raising, Poundland's Steve Smith, has now resigned along with another key director.
Would people have invested in this company if they knew Steve Smith was going to leave?
Probably not.
Where does this leave investors - who knows? Accounts due in August.
So the next time some big mover promotes a pitch on Crowdcube, just remember that they wont hang around if the going gets tough.
So the next time some big mover promotes a pitch on Crowdcube, just remember that they wont hang around if the going gets tough.
They only funded on CC in 2014 because of a phantom institutional investor that supposedly pledged £300,000 against a target of £500,000. If you look on companies house you'll find that this institutional investor was PP Asset Management, which had £143 (one hundred and forty three pounds) on its balance sheet in 2013. Check it out for yourself - it is all on companies house website. A wash through investor imho, that has probably done very well in consultancy fees over the last years. How this CF thing ever took off is anyone's guess - as the madness of crowds is a recognized phenomenon and something that should not be encouraged.
ReplyDeleteWhat is happening to Estatesdirect?
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