Pedal Me app, Uber style ride app

Got an email from Pedal Me about crowdfunding today.

Link here for those interested:
https://www.crowdcube.com/companies/pedal-me/pitches/bk20GZ

"Despite tireless efforts, we’ve been unable to reach a viable agreement with HMRC - which means there is no realistic chance of trading out of the current debt, even with those offers of investment and ongoing improvements in productivity.

Having exhausted all alternative options, we have been forced to put the company into administration. At the same time, a group of existing shareholders bought the company assets back from administration as a going concern - preserving the jobs, the service and the mission.

This is a devastating decision that none of us ever wanted to make, but we have acted now in order to protect the mission, and our people.

This unfortunately leaves you, our shareholder, in the position we have done everything in our power to avoid; with your investment worthless in cash terms. For the majority of you whose investment sits under EIS or SEIS - there is some consolation in the form of loss relief, but I am very aware that this is a far cry from what your investment could have realised if things had worked out differently.

On a personal basis, I’m absolutely devastated by the turn of events that have led us to this point, even whilst remaining incredibly proud of what we’ve achieved together.

I believe that people who invest in good projects deserve great returns - and that could have been possible this time, if things had been only a little different. If we’d made only a few key decisions differently and if a few external events had been different. I’m sorry that we haven’t been able to deliver what we’d hoped for you, our investor.

As the single largest shareholder in Bike Taxi Ltd (the company underlying “Pedal Me” until today, that you hold shares in), and having had to contribute personal funds at considerable risk to myself to allow the company buy-out in order to conserve jobs, believe me when I say that I would have done anything possible to avoid this playing out in the way that it has.

I do, however, believe that this process allows the Pedal Me mission, which you have been a fundamental part of establishing, to have the best possible chance of flourishing.

A fresh start with better governance, processes, and the learning from the last 6 years."

sad news :(

Very sad.

Sad news, hopefully didn’t fuck over the shareholders who didn’t benefit from discounted prices on business assets.

feels a bit cynical doesn’t it.

I put a modest amount of money into it. It was a shock to get the message but I wasn't massively surprised. The last couple of fundraises have felt a little bit desparate and, when I asked for current financial info, I didn't get any. Also it was a bit odd Ben stepping down for a while then coming back.

I don't know if they would have made it were it not for COVID. They might have done but maybe not. There always seemed to be a 'just around the corner' element to any projections I saw. With something like this there are always more challenges to be met and the capital requirements continue, so it was a big ask.

It's not fun to lose money but I don't feel bad at the way things have been done. I'm sure Ben and team tried very hard to avoid it coming to this but they most likely ran out of options. Saving the people's jobs is more important and if he can do that, he will have done well.

And I've got a pink cap!

Same.
But I didn't get the pink cap.

It was an expensive cap

never got my pink cap, either