🚀 Crowdfunding graveyard ⚰️

BBNo (Brew by Numbers) is in Administration. In May, there were talks about a “deal”.

Based on the joint administrator proposals, they tried pre-pack to a “connected party” and it didn’t work. Now, they’re sold for £220k to a privately-owned beer manufacturing business. BBNo raised £522k at £4.9m pre-money in 2020 via Crowdcube.

Great beer - too bad they did not make it!

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Optimus Price went bankrupt. Raised on CrowdCube and was all around automated price manage of adverts that appear in Google Shopping. Always felt it was a bunch of engineers who did not know how to sell or who to sell to. Alas no EIS as Spanish. Ai Carumba!

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Luxtripper has entered administration after running out of cash.

I invested in 2016 on Crowdcube.

To be honest never understood why I invested in such a saturated market. Suppose they had a good go at it though, 8 years, considering the pandemic.

Now just to see whether the brand ends up coming out of administration with the same board of directors, but having shed all of their investors, happens far too often.

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Derby Brewing Company
It is with huge sadness and regret that we have to announce that Real Brewing Pub Company, the pub company arm of Derby Brewing Company has today entered administration. The brewery will not be affected and continue operate going forward with two of our sites the Hole in the Wall, Mickleover & NOTSA, Aston on Trent continuing to be operated by Derby Brewing under a new pub company.

part 2…In terms of the impact to shareholders thankfully unlike many in our sector we were able to continue with the business all be it in a smaller guise. Meaning that shareholders shares remain in place and are not impacted other than the loss of Real Brewing Pub Company.

Has anyone had any experience applying for EIS relief for a crowdfunding investment that has gone to zero?

I made serval investments into Climb8 before they shut up shop, and hoping to claim some relief this year but it all looks hella confusing

Yes - my accountant does it and unless you know what you are doing, it is worth engaging with one, at least until you learn how to do it yourself.

It’s straightforward if it’s gone to zero. On self-assessment you claim a negative capital gain. So if you’d invested £100 and claimed EIS of £30, then you claim a capital gain of -£70. Put in the relevant details and it will calculate the refund amount based on your tax band.

If you don’t do self-assessment, no idea of how to do it.

Also if it’s not a zero claim, i.e. you get 1p in the pound, if it’s more than 3 years since shares were issued, do the same as above but adjust the £70 figure accordingly. If it’s less than 3 years, then tough luck, you’ve lost the EIS relief because this is considered a sale, and you even have to pay back the original £30.

I invested on the 06/11/2019 Andersen EV and the company was made insolvent on 11/10/22 Can I still claim EIS even though they went insolvent 1 month before 3 years. Any help would be appreciated

I got an answer can you confirm the answer is correct Thank you

yes you can the 3y rule is for the upside not downside Is that correct

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As long as the value of the shares is zero, you should be able to make a zero value claim, i.e. it doesn’t matter that the 3-year period was not complete

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Rejuvenation Water Insolvency - another to add to my growing list of crowdfunded failures

Email received from the founder today
"### Rejuvenation Water

For those that have been following my updates, as I toil to raise the finance that we require or seek an acquisition, will know that our runway was getting progressively shorter. I’m afraid to announce that the runway is up and I’ve had to start the insolvency process this week.
Having spent 8 years building Rejuvenation Water, this decision was difficult and very emotional for me but, without the funds that we need to progress, I had little choice.

Here’s where I should reflect on all the cliché highs and lows but, given the losses that will be crystalised, I’d like to just apologise for all those that have backed me and Rejuvenation Water. I still believe in the business, especially the matcha pods and its product - market fit but, in discovering this 7 years into the journey and against the stress of economic and supply chain that we haven’t seen in over a generation, the opportunity to kick on simply didn’t materialise.

This process will mean that the insolvency practitioners will effectively take control of the business, sell any assets that remain in the business and apportion out the proceeds to creditors. Given the few assets that we have in the business, they’ll be little proceeds for creditors and nothing left to equity holders.

For those with SEIS/EIS investment, the loss relief will be due against your next self-assessment.

I am eternally grateful for the support and faith placed in me. The learning curve over the last 8 years has been exponential and I will be using this experience in my next venture. As mentioned in my previous update, I will be assigning 5% of my shareholding in my new business, liquidation.store, an e-commerce platform for to individual investors of Rejuvenation Water.

I’m here to answer any questions that people may have. Simply reply to this email and I can pick it up from there.

I’ll be in touch in due course.

Best,
Kris"

Some brass neck there as he moves seamlessly from ‘nothing left for equity holders’ onto punting his next venture.

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Was this received by email? Nothing on the raising page, from CC or sent to me by email…

By email
kris@rejuvenationwater.co.uk

https://eastlondonliquorcompany.com/ has gone into administration

Least we still get a lifetime 25% discount on their spirits, just glad I didn’t put much into this one. Still surprised as they appeared to be doing good things, with their upcoming Ocado listing and releasing a whiskey cask offering……but guess that’s the environment small independent firms operate in with such tight margins, one minute your up and the next your not.

They could have offered shares to investors in NewCo, as some other companies that have liquidated have done. They just were not very good at running a business and cashflow forecasting, the last round was a downround and can keep blaming external factors but at some point you have to have a close eye on your numbers - and they didn’t.

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Another one bites the dust - The Funky Appliance Company on Seedrs. Bit of a bolt from the blue as the company was doing really well until it got shafted - £10m valuation a few months ago :confused:.

Long story short, one of the management team lent the business £100k from his own business, on the basis that they wouldn’t have to start paying it back till 2024. After a dispute with the founder / director he then got together with the rest of the management team and pulled the loan 3 months early. This forced a healthy company into administration.

And guess who bought the company back from the administrators for pence on the pound 2 weeks later? You guessed it, the management team. This wiped out the owner and all the Seedrs shareholders in one swoop, and they now own the company to themselves. They even had the gall to post on Seedrs that if any of the old investors (who’s money they stole) would be welcome to invest back in their new company. :face_with_symbols_over_mouth:

Seedrs, the new owners and the administrators are completely ignoring emails and messages from dozens of disgruntled investors asking how this could happen.

For me this was the final nail in the coffin of crowdfunding - I can’t be doing with the fraud and backstabbing, and will be sticking to the stock market from now on. But fingers crossed my investment in Freetrade comes good one day - having got in at 15p a share that would wipe out all the other losses :hand_with_index_finger_and_thumb_crossed:

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Artfinder’s just become my first Crowdcube failure. It’s technically been sold as a going concern but for £0.0089 per share. The 2022 round was £0.281481 and it 2020 £0.17675 so it’s basically a total loss.

Apparently they didn’t realise they were subject to US sales tax and the subsequent liabilities killed them :man_facepalming:

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Anyone know what’s happened with Small Robot Company?

They’ve gone very quiet since September which is never a good sign considering how active they were with the crowd to get enough runway to survive for a trade sale