Crowdmix CEO Alleges “Gangster” Investor Used “Blackmail” To Gain Control Of Company
Crowdmix was one of music tech's most spectacular failures ever. After raising more than $18 million, the startup quickly went down in flames without ever launching a public product.
The CEO of failed music tech startup Crowdmix broke six months of silence this week, telling a UK court that he and the startup were subjected to "blackmail" by real estate developer Nick Candy, one of its key investors.
Ian Roberts told the UK high court that Candy's Candy Capital "acted with malice" by withholding promised investment funds unless he resigned. He alleged that Candy "had a plan to take control of Crowdmix on terms that were hugely advantageous to them," and described the alleged actions as "effectively blackmail" and "as unethical as it was possible to be."
Crowdmix co-founder Gareth Ingham had described Candy as a "gangster" and in his testimony Roberts concurred. "I agreed Nick was acting like a gangster and he was playing us," said the former CEO under oath.
Roberts' testimony came as part of an unrelated case brought against Candy by property developer Mark Holyoake.
A spokesman for Candy brothers told Business Insider: "Ian Roberts’ claims are unsubstantiated and denied in their entirety. His role in the failure of Crowdmix was well-documented in both the business and mainstream media. His allegations are being used solely to cause reputational damage to Nicholas Candy."