A recent article in The Times - http://www.thetimes.co.uk/article/shoemaker-was-on-last-legs-but-crowdfund-investors-were-in-dark-3z5tn9zfz which we helped piece together, follows a number of posts we have here on this company.
It seems wholly unbelievable that Seedrs knew the real situation when they allowed the second pitch. The CEO of Upper Street, Julia Elliot Brown, has a proven track record of being less than straight with her facts. Evidenced very clearly by her selfie as a successful business woman who now helps other companies go bust. How she can claim that she successfully exited Upper Street is incredible.
What we actually said to the Times was '' 'It seems pretty clear that when Upper Street came back for a second time, the company was in considerable financial difficulty. This is certainly not how the pitch portrayed it. The company was valued at £3.2m in October 2015 but by halfway through this month the company was to be worth just £12k. That anomaly is difficult to understand. Investors and indeed Seedrs might well ask why they were not told of the company's real situation.''
The important difference is that The Times left out the reference to Seedrs not being fully up to speed on what was happening.
Equity Crowdfunding needs a few changes, one of which is recommended at the end of the article. But this is not a major change and will not really make much difference. It's playing around on the margins
What we really need is a system whereby companies wanting to use ECF have to have audited accounts for the previous year including a full P&L and then must use full accounts reporting, for 3 years after they have raised their money.
In the case of Upper Street this would have helped prevent this mess.
Platforms must also be held liable for this type of failure - where there is very clear evidence that the pitch, for whatever reason, did not reflect the true state of affairs.
Seedrs is one of the better platforms so this is a very disappointing outcome. You would expect and indeed do constantly find this type of situation with Crowdcube pitches but not on Seedrs.