This is a disgrace but it is also exactly what we predicted Crowdcube would say. Thank you to the investor who forwarded this and who is now a member of ECF.Buzz - so it wont happen again. Shame on you Luke Lang and Darren Westlake -
Dear xx
Thank you for your email, which we will
consider and respond to as a formal complaint.
We understand and share your disappointment at the outcome for Emoov investors. However, as we underline on our platform, there is a very real risk when investing in startups and growth companies. As always, Emoov’s pitch was reviewed according to our due diligence charter, and approved as a financial promotion.
Any claims made on the company’s pitch on Crowdcube, including the financial section of the pitch, were subject to our standard due diligence and were therefore verified with evidence before being approved as a financial promotion. Any additional claims made outside of the pitch or post the raise on Crowdcube, would not be verified or approved as a financial promotion by Crowdcube.
In the cooling off email that was provided to all investors prior to the capture of funds, the company reduced its valuation and confirmed that they would require additional funding. Investors were able to withdraw their investment during that cooling off period.
You can access our Due Diligence Charter, which is public on the Crowdcube site, here.
It’s always disappointing when a business doesn’t succeed but please be assured that we will be liaising with the administrator over the coming weeks and we will provide further updates to investors when possible.
Please consider this email as our official response to your complaint. If you feel we are unable to rectify your complaint to your satisfaction, we would like to make you aware of your rights to escalate your complaint to the Financial Ombudsman Service at the below details:
Financial Ombudsman Service
Exchange Tower
London
E14 9SR
website: www.financial-ombudsman.org.uk
email: complaint.info@financial-ombudsman.org.uk
phone: 0800 023 4567 or 0300 123 9123
We understand and share your disappointment at the outcome for Emoov investors. However, as we underline on our platform, there is a very real risk when investing in startups and growth companies. As always, Emoov’s pitch was reviewed according to our due diligence charter, and approved as a financial promotion.
Any claims made on the company’s pitch on Crowdcube, including the financial section of the pitch, were subject to our standard due diligence and were therefore verified with evidence before being approved as a financial promotion. Any additional claims made outside of the pitch or post the raise on Crowdcube, would not be verified or approved as a financial promotion by Crowdcube.
In the cooling off email that was provided to all investors prior to the capture of funds, the company reduced its valuation and confirmed that they would require additional funding. Investors were able to withdraw their investment during that cooling off period.
You can access our Due Diligence Charter, which is public on the Crowdcube site, here.
It’s always disappointing when a business doesn’t succeed but please be assured that we will be liaising with the administrator over the coming weeks and we will provide further updates to investors when possible.
Please consider this email as our official response to your complaint. If you feel we are unable to rectify your complaint to your satisfaction, we would like to make you aware of your rights to escalate your complaint to the Financial Ombudsman Service at the below details:
Financial Ombudsman Service
Exchange Tower
London
E14 9SR
website: www.financial-ombudsman.org.uk
email: complaint.info@financial-ombudsman.org.uk
phone: 0800 023 4567 or 0300 123 9123
Unbelievable.
Do you critique the other 3 crowdfunding sites, or just Crowdcube?
ReplyDeleteWe do cover Seedrs and SR as well as a few smaller ones. We concentrate on Crowdcube because their abuse of this system is in our opinion the main problem. Other platforms ahve failures but they try to help investors - not hide from them. Of course when we launch the now funded ECFBuzz, it will cover all deals.
ReplyDeleteCan't believe they let Emoov reduce the valuation and introduce new material facts about their funding requirements during the cooling off period. They could and probably should have pulled the plug at that point to protect their users. I read today that the son of the CEO of Emoov used to work for Crowdcube and encouraged his Dad to raise through them.
ReplyDeleteInteresting. Of course the used them twice. In 2015 there was no serious funny business as far as we could tell but in 2018 we immediately called this one as a con. And so it proved. clear from this and all the other disasters that Crowdcube couldnt care less about investors, which given they they drive their revenues is a little stupid - no surprise there then. Chickens are coming home to roost and we have them lined up.
DeleteIts a perverse business model. CC only get paid when a successful raise is completed. Therefore they are incentivised to raise money for anyone, regardless of the long-term outcome. A flop or a success, who cares, CC get paid on both and washes its hands of any responsibility the moment the money lands in its account. What are Draper Esprit thinking? propping up this sham. When will we see Panorama doorstepping Darren and Luke?
ReplyDeleteYes, they don't care what they finance as long as they get their fees. I suppose there is a kind of logic in that they let the crowd decide, but the crowd can be manipulated. Regardless, neither of the founders has any financial experience and while they complete their objective dd there is no subjective dd. Most brokers in the city wouldn't touch the gunk CC peddle. It is an absurd sitauation and the collateral damage CC have inflicted on investors runs into the millions.
ReplyDeletemy estimates are 120 million obliterated, 10 million going concerns and 10 million of gains.
ReplyDeleteWhat changes everything are the new EIS Rules - basically, it is only going to be start ups from now which is what the EIS was designed for. How CC could ever think they would get EIS is the most amazing thing. Not a chance -
What are these new EIS rules?
ReplyDelete