Velvet London, a beer producer, raised £45k at the turn of 2014/15, on Crowdcube and has now closed. As usual it didnt last long but it did use SEIS so no one will lose out, apart from HMRC. Yet another success for the UKplc's start up funding policy.
And we are only scratching the surface. Surely time for someone somewhere to wake up? If you put money into poor plans run by people with little or no experience, back it up with SEIS and free beer for investors, you will get funding. You will also get a business collapse. Extend that nationwide and we have a problem.
Velvet went from revenues of £12k to over £300k to £1.5m in the space of 24 months. Well the problem was, they didnt - that's what Crowdcube said they would do. Not sure they ever sold anything. The projections on Crowdcube are obviously complete tripe but so are the historic accounts. The real accounts show considerable losses mounted up and a negative BS, whereas the Crowdcube BS is in the black.
Ridiculous.
If the CC BS (and p/L etc) says something different to what it actually was isn't that a clear mis-selling case?
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