Friday, 27 March 2015
Why do some ECF pitches fail?
Secura Management, a company that has been going since 2000, has just failed to raise its £150,000 on Crowdcube. Well failed is a polite way of saying it bombed. 12 investors put in £5,000 in total, with someone putting in £3,000 of that.
So what makes a pitch like this - where the founder claims to have built up the largest privately owned financial services business in the UK - The Greatminster Group - such a massive flop?
Maybe its because Greatminster went into receivership in 2000 and was only finally wound up in 2010. Maybe it's the founder's cricket score record of being a director of 54 companies, 49 of which have closed down. The pitch had very few questions on its forum so maybe the guy just hasnt got any friends?
You might well ask why Crowdcube have this type of 'entrepreneur' on their site. How desperate are they to have pitches? Not since Crowdcube had a pitch by BioProgress' former CEO Graham Hind has a business been so roundly rejected by the crowd. The two do have similarities.
Our guess is that this was as good a bet as most of the pitches the platform pushes out - which it wont surprise you to know is not a good bet at all.