Crowdcube's disastrous launch of their investor fee confirms their poor management.

Management is about is managing clients and planning ahead. Crowdcube decided to try and sneak a new investor fee passed their clients in conjunction with their new raise. The clients noticed. 

We say they decided to do this but in reality it probably just happened wihtout any planning - like many things on he platform. In fact in the same rather haphazard way they have grown the loss making company.

After a barrage of questions, Crowdcube have now been forced to admit that not only did they not tell investors about this new tax on their investments, apart from in the FAQ section (who reads that regularly?), they also failed to charge the VCs who have put money into this round, whilst hitting the small investors with the full amount. 

Luke, who has never knowingly apologised for any of the company's many flaws, has been forced to publish an apology and pay these fees (eventually collected) into a charity. Nice gesture but it wont let you off the hook Luke.

This is clearly some gross mismanagement and quite rightly investors are angry about it. To rub salt into the wound, both Luke and Darren have made a good load of cash in this round by selling some of the their shares to Draper Esprit. When asked to explain why this facility wasnt passed onto small shareholders (ie their clients) they said that the management had earned this right. Eh?

Well we have been saying for some years that both Luke and Darren do not have what it takes to build a large successful business. Nothing we have seen so far changes this opinion. Darren, as we have pointed out before, claims to have had successful telecom businesses in the past but on checking these, they turn out to be less than successful - liquidated in fact. Luke is just good at PR. The idea of crowdfunding is good but their model is rubbish. We produce almost daily proof of this here. Why dont their investors get the message?