INeed has raised money on Crowdcube FOUR times. Now, with its story wearing a little thin to raise more, it is closing its doors.
INeed was one of Crowdcube's early successes - although it never got close to its fantasy projections for any of its 4 pitches. Since 2012 it has raised over £200k on the platform. In the last and final round in 2015 it showed profits for YE 2016 of over £1m. Hmmm.
What is more alarming is the fact that during this raise the company knew that Facebook were going to be reviewing their Facebook Friends API - which they in fact shutdown support for in April 2015. So just at the time that this company was selling more of its equity on Crowdcube, it was also aware that its main means of operation were being removed.
In the letter sent out recently by the company, they declare that this move by Facebook was the main reason for their failure.
You have to ask if this final Crowdcube raise, given the developments behind the scenes, can be justified? It seems to show very little regard for the shareholders and be totally contrary to Crowdcube's much repeated mantra that they are open about the information that is shared. The filing for these new shares was not completed until October 2015 so they had plenty of time to cancel the finance. But then that would have lost Crowdcube their commission.
Whatever your conclusion, the result fits in very neatly with our research into over 400 companies that have funded via Crowdcube since 2011 - research that we hope will be available at the end of March once a whole load of results have been filed. Register with us if you would like a copy - firstname.lastname@example.org