Some weeks ago we received worrying reports from investors in Brokerstars, who crowdfunded on FundedByMe April 2014, we have since tried to understand the problem by proactively reaching out to the entrepreneurs through various channels with no success.
What we have received is some inside information, but we cannot confirm whether the information is true or false.
What seems to be a fact, however, is that due to a fall out between the founding team members they have not delivered on the plans set out. Unfortunately we believe this means that Brokerstars can be considered a failure.
It is therefore our duty as an open and transparent platform to inform you about this.
What have we learnt?
Investor relations and communication is key in any company and by not communicating with your network properly you do not only miss out on opportunities but in dire times this can mean the difference between being able to cope or to fail. Furthermore, by not communicating, you risk your reputation. Failing is one thing, but failing from the wrong reasons something completely different.
Moving forward we will now start to develop a plan that will involve all future entrepreneurs. Most likely a binding contract or clause holding them to a communication plan. Investors putting their trust in entrepreneurs should never be kept in the dark.
For more information the former CEO of Brokerstars Jesus M Santos has made himself available and can be reached via email – firstname.lastname@example.org
Please note that mr. Santos is not responsible for the failure rather the one most willing to cooperate.