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Crowdfunding Failure Gets Investors in a Spin

In our weekly look into the world of business, Eve Lakin, from our Corporate...

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Crowdfunding Failure Gets Investors in a Spin

17th May 2017

News : Commercial

In our weekly look into the world of business, Eve Lakin, from our Corporate and Commercial team, takes a look at the downfalls of crowdfunding…

Vulpine Performance, a London-based cycle clothing brand, has entered administration despite a celebrity-backed entrance to the market only five years ago.

Vulpine raised £1million of investment in only a week through crowdfunding website, Crowdcube in October 2015. Following the collapse, one former director described crowdfunding as a “ticking timebomb”. It has been reported that some 600 investors are set to lose their investment leading to renewed concern over the use of crowdfunding with its emphasis on speedy investment and limited (or non-existent) due diligence.

Crowdcube acknowledged that “equity crowdfunding investments are high-risk” leaving many to ask if crowdfunding is the best way to get the wheels of business turning.

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