Crowdfunding Site Defends Its Diligence Process

In 2015, UK company Rebus raised “£816,790 via crowdfunding platform Crowdcube last year to fund an expansion that aimed to deliver investor returns of up to 10 times within three years,” per the Financial Times.

It has since gone into “administration,” which may cause a total investment wipe-out for more than 100 crowdfunders. These investments are not insured by the UK’s Financial Services Compensation Scheme.

Crowdcube has responded to complaints by noting its curation and due diligence process.

http://www.ft.com/cms/s/0/804d41c2-ca6d-11e5-be0b-b7ece4e953a0.html#axzz46HGD7R00
http://blog.crowdcube.com/2016/04/08/our-comments-on-the-failure-of-rebus/

Advertisements

About JeffKoeppel

I am a corporate/securities attorney in the Washington, DC area. Prior to joining the firm, I was a Senior Attorney Advisor in the Division of Corporation Finance at the U.S. Securities and Exchange Commission. I am a member of the Bars of the States of Maryland, New York and the District of Columbia. You can also follow this blog on LinkedIn at: http://www.linkedin.com/pub/jeffrey-a-koeppel/0/63/5a9
This entry was posted in accredited investor, Broker dealers, Crowd Fund Act, Crowd Fund Act of 2012, Crowd Funding At the Margins, Crowd Funding Platforms, fraud, Funding Portals, technology, VC, Wall Street and tagged , , , , , , , , , , , , , , , , , , , , , , , , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s