At the crucial moment when Crowdcube are sure to be asking for more cash - you can tell as their PR has been ramped up - the ECF platform is completing enough funded campaigns to generate a BE situation. For this month at any rate.
Despite out best attempts to warn people and despite mounting evidence that they will not see any of their money again, the Crowd is reaching deep and if you count the over funding campaigns on the platform, it totals around £15m currently. This truly is a first and is a major breakthrough. Annualised this would get them to the magic figure of £180m which at a 4% commission, is BE nirvana. And this does not include the bizarre US campaign they have listed.
One Q you have to ask is just how much of this money is on/off commission? For example VITL were going nowhere with their £400k campaign until this week, when Nogra Group put in £600k. The Crowd in this instance has put in less than half of the target. Is is likely that VITL would be paying commission on this £600k? We think not.
We know that Crowdcube have put a lot of flex into their commissions - smaller companies pay full wack, allowing the larger ones to pay less or nothing (reportedly). So that would explain their low 4% overall commission when they charge a 'fixed' rate of 7%.
So despite the total lack of returns and exits and the increasing failures and zombies, all catalogued here, the Crowd are fully behind the platform. It makes you wonder. What would it take to change this behaviour?