Crowdcube's Socapps finally says So Long, So What, Farewell, Hard Luck.

                                         

Socapps funded via Crowdcube in 2014. It took £77k off investors. It hasnt done much since and has now, after a long time in limbo, finally issued a Final Gazette.

It was apparently an App - but it never had much of a commercial offering as far as we can tell. The last accounts filed were for YE Feb15, so what it has done in almost 4 years since then is anyone's guess.

Yet another Crowdcube farce. Well done boys.

We have written about this company a few times - the App is now owned by another company although it too seems to have done little with it. See here.

According to Crowdcube the company is still active. Good job.

Growing numbers of Crowdcube backed companies are taking investors to places they didnt know about.

We said this would happen in 2013. Numerous Crowdcube backed companies are now either failing to issue accounts, failing to file anything or have been 'taken over' with no regard for the interests of shareholders. 

To take a just a couple; Stockflare and Socapps. Total invested is north of £500k. 

Socapps have not filed accounts since 2015. They do nothing. But are still 'active' at CH. Their app Browsa, isnt and their SM, doesnt. We have written about them before. 

Stockflare told investors a while ago that they had failed. But would try to encourage a sale. Now they are Stockflare Analytics and run by the same crew who also set up Stockflare Securities which has a US company, Stockflare inc. It is partnered by US firm DriveWealth in NJ. 

Oddly Stockflare A states on its website - 

This website is operated and maintained by Stockflare Analytics Limited, a UK company. For the avoidance of doubt, Stockflare Analytics Limited, should not be confused with Stockflare Securities Ltd. Access our filings at the UK's CompaniesHouse.gov.uk.

The two are run by the same people, the latter was incorporated June 2018. Stockflare S company is the one with an FCA licence. Stockflare A appears not to have one. For a company recommending investments in shares that is a little odd. Stockflare S are just third party holders, a system which invites trouble and one which we have been calling for changes to. 

The only running thread through all of this is Shane Leonard, who was the guy selling Stockflare to Crowdcube investors for £450k, all that time ago in 2015. Shane is named on the FCA licence for Stockflare S. He has had a few companies - none of which have done much at all. There was talk of CC shareholders getting Crypto once the company was passed on - yes that old chestnut again. Yo, whats good? Crypto - the criss Bayden goldminted cashpan, innit bruv. Just look at XXXXXX - ontop jokes right. 

So where does that leave Crowdcube investors? We have absolutely no idea but we are pretty sure it isnt anywhere they were looking to be. Hitching a lift home might take a while. 

There are lots more examples and they are being added to by the month. 

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?