Last year, Rebus used online crowdfunding platform CrowdCube to raise money for an expansion that aimed to deliver investors a multiple of between 6.4 and 10.6 times their invesmtent within three years. It has been confirmed this week that Rebus called in administrators on 28 January, just eight months after its CrowdCube campaign. The 109 people who made contributions to the claims firm, which ranged from £5,000 to £135,000, are now watching their investment swirl around the drain.

Most expensive failure  

The collapse of Rebus will likely rank as the most expensive failure of a crowdfunded company in the history of UK business. According to FCA figures, the average failure rate of crowfunded businesses is just six per cent, compared with a total of 50-70 per cent of UK businesses that fail in their early years.

Investors' fate unknown

Rebus' pitch to CrowdCube investors said that the firm was established 'to bring hope to ordinary investors' who had lost money on flawed tax avoidance schemes. According to the latest available figures, the firm was valued at £12m last year and was managing some 1,700 claims totaling more than £930m. With pre-tax losses of £1.4m in 2012-2013, Rebus' crowdfunded expansion was designed to help shore up a £12m pre-tax profit by 2017-2018. The firm has not yet commented on what will happen to investors and ongoing claims now that it has entered administration. Sources: Law Society Gazette; Financial Times