This is what a Crowdcube Zombie looks like.......................Not for the squeamish.

Ever wonder what happened to that company you invested in on Crowdcube? Well here is the answer. 

We wont reveal the name as that would be too cruel. But here are some staggering figures - 

This company raised £125k on Crowdcube in 2014 and talked about profits by YE 2016 of £154k on a turnover of £793k. All quite small scale, their product was in a very now and niche sector. A good bet for steady sensible growth. What could go wrong?

We dont know but the investment has been spent and the turnover for YE 2017, so a whole year after those projections, was £80k. No this isnt a Japanese war joke; there are no missing zeros. Of that £80k revenue, £50k was COS and then they spent £4k on 'staff' and 'other charges' of £16k. These zero hours contracts really have gone bonkers. No notes. A LT £40k liability (created in 2014) has vanished. The turnover in 2014, the year they raised on Crowdcube, was published as £191k. Surely some mistake?

From all of this they have generated a 'profit' for 2017 of £10k. But the BS makes that a 'profit' of over £40k. Clearly the BS is wrong or last year's was. There was no new investment in the year. 

It is what we have classed a Crowdcube Zombie - going nowhere but not closed. Moving slowly and inextricably towards death but never getting there. Making a small living for the founder - Ms Other- Charges maybe.

So when Crowdcube produce their inevitable table of numbers to PRing their 'success' many companies like this one make up the bulk of that success. 

Crowdcube investors, 4 years out, have no way to claim loss relief and no way to exit. They too are tied to the Zombie as it helplessly stumbles the deserted streets.

Oh and of course this was all backed by Crowdcube and their FCA licence and no doubt heralded in their PR as part of their UKplc building exercise. Along with the inevitable use of EIS and or SEIS tax reliefs. A good job all round. Are we seriously going to put up with this?