“I’m Sorry,” Say Crowdfunded Companies Gone Bust

Bloomberg reports that apology letters are starting to become a “thing” for crowdfunded companies that have burned through their investors’ funds and have gone bust.

It notes that the Seedrs equity crowdfunding portal has seen at least 3 companies bite the dust recently, including: . Pronto, a food delivery service that raised GBP100,000, East End Manufacturing, a clothing maker that raised ~GBP400,000 and Earlybird, a subscription snack startup that died after raising 150,000 pounds.

Startups are risky, so investors better get used to hearing “I’m sorry” often.

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, checkbook, Crowd Fund Act, Crowd Fund Act of 2012, Crowd Funding At the Margins, Crowd Funding Platforms, discrepancies, Film, Jobs, Legislative Intent, SEC, Small Business, technology, VC, Venture Capital, Wall Street and tagged , , , , , , , , , , , , , , , , , , , , , , , , , , , . Bookmark the permalink.

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