|Alternative Funding Network|
High Profile Start up Fails Despite Successful Crowdfund Raise
Bubble & Balm, one of the first successfully crowdfunded start-ups, has ceased trading. They had been operating since 2011, raising £75,000 for 15% equity on CrowdCube. As the first large profile failure in equity crowdfunding, many are left wondering how this will affect the nascent industry. Some critics fear that this is the first of many prospective failures. Others are more pragmatic. As Peter Adcock explains "investing in start-ups is not for the fainthearted and should only really be entertained by sophisticated investors who know the risks and can afford to take a hit when companies fail — which more often than not they do.” Ultimately, this failure will fuel the larger debate around regulation, especially with respect to who can participate as an investor in crowdfunding.