UK 10:46 Wednesday, 7 October 2026
Breaking news and expert analysis on fast-moving AIM and LSE listed shares
Today's Daily Mail carries a horror story about the demise of Crumpet Cashmere, an upmarket clothing venture patronised by Pippa Middleton (pictured) and other well known bimbos which has just gone bust. My point is not to make cheap jibes at the ghastly Pippa but to flag up how this shows the horrors of crowdfunding and how the FCA is failing in its duties to protect mug punters in a horrifying manner.
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Comments
Daniel Victor
Perhaps they could make it work if they gave the funders access to cheap clothes,given the high retail margins on cashmere.
adstrader
I have thought for some time that crowdfunding is a disaster waiting to happen. The funding sites are just promoters and I doubt they do any real due diligence. The only vetting they do is likely that they select schemes which they think mug punters are most likely to sign up for. I reackon the expected rate of return is lower than that of the National Lottery.
Drunken Sailor
I don’t care what you say Tom, I would not kick Pippa out of bed for farting.
Swift
This article is all too true of the problems that we are going to see more of as crowdfunding (equity and lending) goes through the next couple of years.
And it is really sad because there is a very good funding basis here which is going to get its reputation ruined by the flaky promoters.
With quality due diligence and visibility of company details to the investor/lender a good industry could be supported by informed investors. BUT we have to face the fact that there are not enough quality companies being overlooked by the current finance providers, so the situation does not allow for an unlimited number of online crowdfunding sites with full lists of potential customers.
As always, when the arrangers of finance get their funds up front and have no risk from any subsequent default things eventually go wrong.
Lonster
Crowdfunding and Crowdcube are a step or two up from AIM. There are hundreds of companies being promoted but like any investment, do your due diligence. What I have found with a few companies is that there is great transparency and you can actually communicate with the founders and get the answers you are looking for. Unlike listed companies where CEOs and directors hide behind regulation, waffle and spin.
MARYMARY
Game group is the same. Am gobsmacked that crap directors can go skint and buy their company back for flumpence, get shot of all their debts and obligations and then do it all over again, and again. Once is enough. It is an incentive for fraud, as is the ability to split the stock, keep the protitable bit and dump the rubbish on the existing shareholders without having to offer any of the good half, as in Rage.
DGL
Good article – thank you. As someone who has taken the first tentative steps into crowdfunding as an investor/ lender – this is a timely reminder.