With Crowdcube's PR you would expect the sale of one of their funded companies to American Express in late 2017, to be headline news. Well as Crowdcube shareholders lost money on the deal, of course they have swept it into their large bin of failures.
We brought this story to you last year - here. But more details have now emerged. The buyer was American Express.
Cake got itself into financial difficulty and had no choice but to close or accept the AMEX deal, which valued the company at around £9m. Crowdcube investors had accepted a valuation of £11m when put in £1m in 2015. Large debts meant that most of the sale proceeds went west. Sugru style.
We think that if Crowdcube had an ounce of honesty they would put both of these two companies up as examples of exits that left their investors out of pocket. After all they claim to be open and honest.
And Beauhurst where does this one appear in your infographics - exit? dead? zombie?
And of course we shouldnt forget that this is another UK gov subsidised deal that has left the good bits drift overseas for a snitch of the real value - cf Sugru.
And of course we shouldnt forget that this is another UK gov subsidised deal that has left the good bits drift overseas for a snitch of the real value - cf Sugru.
Interestingly, there used to be an app called CityHawk where you could grab last minute cancellations at top restaurants. Last time I tried to download it (a couple of years back), it redirected to Cake, but I couldn't find any mention of any takeover...not sure if any money changed hands on that one.
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