The very real risks of investing in start-ups have come to a head after the announcement Bubble & Balm, the first company to raise money via crowdfunding site Crowdcube, has ceased trading. The news is a blow for crowdfunding which has become one of the fastest growing investment sectors in the country. The Financial Times reported this week that the fair trade soap manufacturer asked Companies House to be struck off. Its website, Twitter account and Facebook page have been taken down. Crowdfunding works by sidestepping the banks to directly connect businesses and investors – and has been praised for its role in helping to plug the funding gap for start-ups and small firms in the UK. As with other types of shares, if it is successful the value goes up. If not, the value goes down and you could lose your money completely. Bubble & Balm had been operating since 2011, when it raised £75,000 via a pitch on Crowdcube in return for 15 per cent of the company’s equity. Investors were also promised free soap. Luke Lang, co-founder and director of Crowdcube, said he was disappointed for investors and for Sue Acton, the founder of Bubble & Balm, […]
The post Crowdcube’s first fundraiser beauty start-up Bubble & Balm throws in the towel appeared first on CrowdFund Beat.