There have been worse ones that achieved funding. Front Up Rugby which raised £300k in various tranches on CC and was their Business of the Year, was backed by James Haskell. it went bust but not before allowing the founder to arrange a pre packed deal via the administrators to give him a well paid FT job with Lyle&Scott who paid off his business loan. Creditors including HMRC and all investors got nout. Not surprisingly Haskell's subsequent attempt to raise money for his own brand fell flat on its face.
Not really. If you look at logically why would there be. Maybe one out of the first 1000 CC pitches to fund will make money for investors - maybe. So that's in another 2 years time or so that it pitches and another 5 years before it sells for £££££. If like me you joined and invested in 2011, that means you have waited till well after 2020 for a single result. That is a very patient position to hold for more than 10 years, checking pitches every month etc. As of today not one of the 250 CC funded pitches has returned anything, 10 or so have gone have gone bust and many of the ones we have research on from 2011 to 2014 are nowhere near the projections used to sell the equity. Its not a sensible way to build sustainable businesses and without subsidy (SEIS and EIS) it would have died an early death. Really its just a play for thing for bored overpaid city dwellers!!
Hi Rob, Filmore and Union has recently received an investment of 3,5 milion. It seems that the value of the company has increased by about 50 per cent. What are your thoughts? Best, John
Yes saw that but was waiting for their accounts due out Dec17. Where do you get the 50% from? Their March 16 accounts showed a loss against proj profit. So we will have to wait and see. It is only a paper valuation anyway. They say their 17 turnover is in line with projections so maybe good news?
I get 8.3m new shares at £2.5m (maybe the xtra £1m was a loan?)which equartes to the sake of 40% of the company for £2.5m - giving a value of £6.25m? Which is an increase but only of 25% not 50%.
CAKE is pretty bad too, Kelly Hoppes was the biggest joke of all.
ReplyDeleteCrowdcube = house of cards
There have been worse ones that achieved funding. Front Up Rugby which raised £300k in various tranches on CC and was their Business of the Year, was backed by James Haskell. it went bust but not before allowing the founder to arrange a pre packed deal via the administrators to give him a well paid FT job with Lyle&Scott who paid off his business loan. Creditors including HMRC and all investors got nout. Not surprisingly Haskell's subsequent attempt to raise money for his own brand fell flat on its face.
DeleteRob, do you see any winners out of the crowdcube platform to the benefit of investors?
DeleteSome of the management teams I am seeing look shocking, but there are one or two I was going to back until I found you :)!!!
Not really. If you look at logically why would there be. Maybe one out of the first 1000 CC pitches to fund will make money for investors - maybe. So that's in another 2 years time or so that it pitches and another 5 years before it sells for £££££. If like me you joined and invested in 2011, that means you have waited till well after 2020 for a single result. That is a very patient position to hold for more than 10 years, checking pitches every month etc. As of today not one of the 250 CC funded pitches has returned anything, 10 or so have gone have gone bust and many of the ones we have research on from 2011 to 2014 are nowhere near the projections used to sell the equity. Its not a sensible way to build sustainable businesses and without subsidy (SEIS and EIS) it would have died an early death. Really its just a play for thing for bored overpaid city dwellers!!
DeleteHi Rob,
ReplyDeleteFilmore and Union has recently received an investment of 3,5 milion. It seems that the value of the company has increased by about 50 per cent. What are your thoughts?
Best,
John
Yes saw that but was waiting for their accounts due out Dec17. Where do you get the 50% from? Their March 16 accounts showed a loss against proj profit. So we will have to wait and see. It is only a paper valuation anyway. They say their 17 turnover is in line with projections so maybe good news?
DeleteI get 8.3m new shares at £2.5m (maybe the xtra £1m was a loan?)which equartes to the sake of 40% of the company for £2.5m - giving a value of £6.25m? Which is an increase but only of 25% not 50%.
Delete