Rebus' administrator's report tells us little new, apart from the on going enquiry into the management.
The sad tale of Rebus - funded via Crowdcube to the tune £800,000 and shortly afterwards defunct - takes one more step to completion.
We have written about this a many times - here . It's a classic case of appallingly poor due diligence by Crowdcube. The main man behind the company's Crowdcube raise was a currently banned FCA operator. This, if declared by Crowdcube, would surely have prevented this mess. They either chose to hide it or never knew about it.
So what are the consequences of this blatant negligence for Crowdcube? As usual absolutely nothing. Are they really already too big to fail?
Crowdcube currently have 13 companies raising capital on their platform. Maybe 5 will hit their target at best. The quality of companies raising cash on CC is complete and utter junk. Too big to fail? Please. They are digging their own grave. The demise is already well on its way.
ReplyDeleteIt was covered in the risk section of the business plan.
ReplyDeleteAh you mean the small print! Dont you think it should have been a little larger?
DeleteThis suggests you ate wrong - Lang admits that the background checks on key company personal were shown to be limited in that case, telling BI: "We’ve taken a look at the Rebus situation and realised we possibly could have done more in terms of doing background checks in terms of key persons within the pitch. Luke Lang -
Delete"Our background checks into the people were, at the time, limited to directors of the company. Since Rebus we’ve expanded that to key persons within a pitch. If you’ve got an advisor to a company that’s central to a business’ pitch and therefore material to its success or failure, then we’ll do background checks on that individual."