Wednesday, 27 May 2015
Could Sugru be Crowdcube's saviour?
Lets face it, Crowdcube needs a success.
Sugru - the British designed silicon glue that is forging a niche market in the US - has just launched a £1m raise on Crowdcube.
In 2013/14 the company very nearly came unstuck with a loss of over £1m, falling GPM and spiralling costs. However with new management input, cost cutting and new outlets in the States, they just might be on track for a bright future.
In our opinion there are a few things in the way. Copycat technology cannot be far away, cables and wires for which this has a major use, are things of the past and the name stinks. It's Irish for play - but so what.
The final hurdle is the perennial valuation. At £25m now, the company is going to have to get a lot right to make investors any money, given that they will certainly need new VC money on at least one more occasion.
Investors have piled in but then they did that on many occasions on Crowdcube, only to see the glue holding it all together melt away and their money head west. This product is trying to be the next Sellotape but surely we have moved on. Technology now moves at a pace unthinkable when the first sticky tape took off.