A large Crowdcube success is about to go into Administration proving yet again that their model does not work.

We wont reveal the name just yet as there is still a 1% chance that more money maybe pilled in to rescue it. But in our opinion people are not that stupid.

This is one of Crowdcube's longer term 'successes' and as such it also helps to explain why the overall failure rate for the platform is not alarming. So many of the 2013/14, 15 and 16 funders are now zombies - this one has been going bust for over 2 years. 

When the end comes in a few days time, we expect a short administration to wipe off the debts, wipe out creditors and then a pre pack sale back to one of the Directors, for a rebrand and relaunch - followed in 2 years time by a much larger collapse. Seen it all before many times. 

The attempts to raise more capital that we have seen are, to put it politely, nonsensical rubbish. 

Which is precisely why we need ECF.Buzz. Members would not have invested in this business in the first place, as the tools available to them on ECF.Buzz would have allowed them to work out that this company's plans and its management were not investible. This will in turn prevent this type of nonsense attempting to raise cash and will therefore improve the standard of businesses using equity crowdfunding.