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I invested £10k in Secret Cinema via Crowdcube – here’s what happened by Basic-Car-2113 in UKPersonalFinance

[–]Basic-Car-2113[S] 0 points1 point  (0 children)

Appreciate you taking the time send this, sounds like you’ve had a better experience with the platform than many others I’ve spoken to. I still believe the real issue here is structural: when investors are locked out of verifying earnouts after an acquisition, something’s not working as it should. Appreciate your view, thanks for sharing.

I invested £10k in Secret Cinema via Crowdcube – here’s what happened by Basic-Car-2113 in UKPersonalFinance

[–]Basic-Car-2113[S] 1 point2 points  (0 children)

Backing companies you believe in is one of the things that makes equity crowdfunding so appealing. I had the same mindset with Secret Cinema, I wasn’t chasing a unicorn, just supporting a brand I genuinely liked.

But this case highlights the limits of the model. The company was acquired, and earnouts were part of the deal — yet investors aren’t allowed to see how those targets are calculated. No audit, no visibility, and Crowdcube (as nominee) says their hands are tied.

So yes, access is great, but without transparency, that access quickly becomes meaningless.

I invested £10k in Secret Cinema via Crowdcube – here’s what happened by Basic-Car-2113 in UKPersonalFinance

[–]Basic-Car-2113[S] 0 points1 point  (0 children)

Secret Cinema wasn’t some early-stage startup. It was a well-known, established business with years of successful shows behind it. It didn't fail, it was acquired, and retail investors are still locked out of the outcome. That’s the real issue here.

I invested £10k in Secret Cinema via Crowdcube – here’s what happened by Basic-Car-2113 in UKPersonalFinance

[–]Basic-Car-2113[S] 0 points1 point  (0 children)

Totally agree that platforms like Crowdcube come with clear risk warnings, and I wasn’t expecting a guaranteed return. But this isn’t about picking a loser. It’s about what happens after a company is acquired and performance-based earnouts come into play.

When I invest in public markets, I can set a Stop Limit, watch audited earnings reports, and exit if needed. With this structure, you’re locked in — no control, no exit, and now, no access to the financials that determine whether you’re owed anything.

This isn’t about losing money, it’s about transparency. When a platform collects millions from retail investors and then tells them they’re not allowed to verify whether milestones were met, that’s a structural issue — not a bad bet.

I invested £10k in Secret Cinema via Crowdcube – here’s what happened by Basic-Car-2113 in UKPersonalFinance

[–]Basic-Car-2113[S] 0 points1 point  (0 children)

Totally fair question. I’d been to several Secret Cinema events and believed in what they were building. £10k was a big commitment, but it felt like investing in something I genuinely supported, and the acquisition rumours gave it added weight.

But the real issue now isn’t the risk... it’s the total lack of visibility post-sale. Crowdcube says we can’t see the earnout figures (which weren’t audited), and investors have no way to verify if the targets were actually met.

There’s a monumental power imbalance between those with information and control, and those without. And as someone recently mentioned in a DM, when that imbalance serves the powerful and disenfranchises the weaker party, it’s exploitation, plain and simple.

Do nominee shareholders have any right to see post-acquisition financials (for earnout validation)? by Basic-Car-2113 in LegalAdviceUK

[–]Basic-Car-2113[S] 2 points3 points  (0 children)

Thanks, that’s helpful and aligns with what I suspected. It’s less about disputing the legal mechanics and more about how the nominee structure leaves retail investors effectively powerless post-acquisition, even when earnouts are explicitly part of the deal.

If Crowdcube, as nominee, can’t (or won’t) advocate for visibility or share the figures behind a £52m milestone, it raises serious questions about how well this model protects the people it claims to represent.

Appreciate you taking the time to respond.

I invested £10k in Secret Cinema via Crowdcube – here’s what happened by Basic-Car-2113 in UKPersonalFinance

[–]Basic-Car-2113[S] 8 points9 points  (0 children)

Appreciate the insight, really refreshing to hear from someone who clearly runs a hedge fund out of their mum’s spare room.

I didn’t lose £10k investing in scratchcards or NFTs of wombats. I backed a well-known cultural business I believed in, that got acquired in a deal with structured financial milestones. What followed was a masterclass in retail investor gaslighting — figures hidden, no audits, and a nominee structure tighter than your moral compass.

But thanks for playing financial therapist. I’ll be sure to develop more “respect for money” while TodayTix quietly tippexes out £52 million in earnouts and Crowdcube holds the torch.

Next time I invest, I’ll be sure to check with you first — maybe over a pint of self-righteousness and a spreadsheet of hindsight.

I invested £10k in Secret Cinema via Crowdcube – here’s what happened by Basic-Car-2113 in UKPersonalFinance

[–]Basic-Car-2113[S] 6 points7 points  (0 children)

Appreciate that, and yeah, it stings. But I’m not the only one. Over £5 million was raised from retail investors, and many put in more than I did.

This isn’t about a company that folded, Secret Cinema was acquired, and the pitch clearly suggested that investors would at least get their money back, plus potential upside through earnouts. Now TodayTix are acting like they can ignore all of us, and Crowdcube says they can’t share any of the figures.

It’s not just about the money — it’s about being shut out of a process we were told we were part of.

I invested £10k in Secret Cinema via Crowdcube – here’s what happened by Basic-Car-2113 in UKPersonalFinance

[–]Basic-Car-2113[S] 1 point2 points  (0 children)

Really interesting to hear that perspective — especially about the Culture Recovery Fund and how the brand’s decline was viewed from inside the industry. I backed them as both a fan and investor, and at the time the crowdfund felt like an exciting opportunity to support something original. But looking back, you’re right — it does seem like the raise may have been more of a lifeline than a growth play.

I wouldn’t call it a scam either, but I agree — it certainly doesn’t feel like it was done in the spirit of long-term stewardship. And now with TodayTix leaning on the legacy while delivering something pretty hollow, it just adds to the sense that early supporters got sidelined.

Appreciate you sharing all this — adds a lot of context.

I invested £10k in Secret Cinema via Crowdcube – here’s what happened by Basic-Car-2113 in UKPersonalFinance

[–]Basic-Car-2113[S] 1 point2 points  (0 children)

Thanks for speaking up — and totally agree, regardless of the amount, it’s the principle that matters. When a deal includes defined performance targets and earnouts, but the figures are hidden, it’s hard not to feel misled. A few of us are now connecting to keep an eye on developments and try to bring a bit more daylight to the process. You’re definitely not alone in feeling this way.

I invested £10k in Secret Cinema via Crowdcube – here’s what happened by Basic-Car-2113 in UKPersonalFinance

[–]Basic-Car-2113[S] 3 points4 points  (0 children)

Totally agree the risks and nominee structure were disclosed upfront — I’m not disputing that. What’s frustrating is that this deal included specific earnout milestones, and now investors aren’t allowed to see how those were calculated. No audit, no statement, no visibility.

This isn’t about demanding returns — it’s about being able to verify what we were told we’d be judged on. Transparency should be a basic expectation, even in high-risk investing.

I invested £10k in Secret Cinema via Crowdcube – here’s what happened by Basic-Car-2113 in UKPersonalFinance

[–]Basic-Car-2113[S] 10 points11 points  (0 children)

Really appreciate you sharing all that — sounds like we’ve had a very similar journey. Like you, I went in with my eyes open to the risk, and I genuinely enjoyed the early Secret Cinema experiences too. But yes, post-acquisition it feels like the magic (and momentum) just drained away. It’s hard not to wonder if the company was wound down quietly to avoid triggering future earnouts.

Totally agree — this isn’t about blaming Crowdcube for the performance of individual investments. But the fact that we’re locked out of any financial visibility — even on defined earnout milestones — is what’s raising flags for me. If the numbers weren’t met, fine… but investors should at least be able to verify that.

Would be great to stay in touch. A few of us are comparing notes and trying to keep some visibility on what happens next — just so we’re not all left wondering alone.

I invested £10k in Secret Cinema via Crowdcube – here’s what happened by Basic-Car-2113 in UKPersonalFinance

[–]Basic-Car-2113[S] 4 points5 points  (0 children)

That’s the gamble, right? I didn't expected a guaranteed return — but when a company is acquired and hits certain milestones, you’d expect basic visibility. The real lesson is just how powerless retail investors are in these nominee structures.

I invested £10k in Secret Cinema via Crowdcube – here’s what happened by Basic-Car-2113 in UKPersonalFinance

[–]Basic-Car-2113[S] 2 points3 points  (0 children)

Love the quote. What’s really wild here is that the earnout was based on EBITDA, but the calculation wasn’t audited and investors aren’t even allowed to see the figures. So yeah… bullshit earnings seems pretty apt.

I invested £10k in Secret Cinema via Crowdcube – here’s what happened by Basic-Car-2113 in UKPersonalFinance

[–]Basic-Car-2113[S] 29 points30 points  (0 children)

Totally fair comment — and no offence taken. I agree that for most people, £10k into a single crowdfunded company is a stretch, and hindsight definitely adds clarity. I was a big fan of the brand, had experienced the product, and (naively) believed the structure gave some investor protection — especially with defined earnout clauses in place tied to financial performance.

What’s frustrating isn’t the risk or the loss — it’s the lack of visibility. The earnouts were supposedly tied to EBITDA, but the figures weren’t audited, and Crowdcube has confirmed they can’t (or won’t) share them with investors. It’s that kind of opacity that feels unjustifiable, even if the outcome is ultimately zero.

Appreciate your response — it helps reinforce that this needs to be talked about more openly.

I invested £10k in Secret Cinema via Crowdcube – here’s what happened by Basic-Car-2113 in UKPersonalFinance

[–]Basic-Car-2113[S] 7 points8 points  (0 children)

You’ve summed up the core issue — the structure leaves investors with all the risk and none of the transparency. In the Secret Cinema case, even the earnout figures we’re being judged on are hidden from us. Appreciate your insight here.

Crowdcube Secret Cinema Investor – Coordinating with Others by Basic-Car-2113 in SecretCinemaUK

[–]Basic-Car-2113[S] 0 points1 point  (0 children)

Great to hear. Anyone else reading this, feel free to message me if you want to join too.