Innovation Makers Ltd invented a new baby carrier. They raised £180k via Crowdcube only 6 months ago - to launch it - with the statement that FY 2015 would see its turnover at just under £2m.
The company is now raising another £400,000 on Crowdcube and predicting the launch of its product in spring 2016 - which is after it is supposed to have turned over £2m selling them. The current raise values the company at £2.6m against a value only a few months ago of £750,000. Amazing what some good PR and awards can do to the imagination. Of cousre the new pitch makes no mention of any glitch in their 2014 plan - it makes out that the new £400k was always a planned second raise. Our research shows this to be plain rubbish. to rpove it here is what they said on their own website November 2014 -
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Company news
Crowdcube target with £30k over-fund reached today (19/11/14)
We are delighted to announce that, having reached our initial Crowdcube target of £150k on Monday 17th November, we decided to overfund to £180k and we raised the additional £30k in just 36 hours. We should like to thank the 91 investors, who will now become shareholders in Innovation Makers, for their support of our business and our bridgehead product ‘Little Rider’. It is full steam ahead now with our partners to bring Little Rider to market in the summer of 2015. Exciting times ahead….!..................................................................................................................................
Nothing wrong with an award winning product, just the usual ridiculous projections blindly accepted and promoted by Crowdcube which will now possibly result in all the the original shareholders being diluted.
Oh and as a final point the patent for this invention is still pending - something the original pitch assured investors would be in place sometime ago. Verelli caveat emptor we think.
Hi, I would suggest adding a comment to this one. It took longer than expected, but this company seems to be a success.
ReplyDeleteAgreed it has done better in the last year than it did before but its a little early to call this a success. 2017 is the launch date for its product! Massive dilution so far plus long delays.
DeleteI agree, but they are on the right track in my opinion.
ReplyDeleteYou have not mentioned Ikee in your blog - this is in my opinion a very problematic company, possible a scam. +-41,000 pledged at the beginning by one or several investors and than withdrawn after the pitch ended successfully - 120,000 fell to 79,000. No progress during the past 1 1/2 years, almost no updates and very vague ones.
Please send more info in confidence to rob@ecfsolutions.co.uk Thanks
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