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Big Losses for Crowdcube Investors As Claims Firm Goes Into Administration


Claims management firm Rebus appointed administrators earlier this month. The firm was handling claims worth around £930 million from 1,700 clients.

Rebus raised £817,000 through crowdfunding website Crowdcube to expand the business last year. 100 investors put up funds ranging between £5,000 and £135,000 each, having been told returns could reach up to 10 times their original investment within three years.

These investors will now almost certainly lose their investment.  Crowdfunding is a new and exciting way of cutting out the banks, lending money to companies and at the same time getting much better returns than you can get through conventional deposits.

This failure is however a timely reminder that you don’t get higher rewards without greater risks, So don’t make crowdfunding investments without a great deal of due diligence and accept that you may lose all or part of your investment.


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