Tuesday, 25 August 2015

Doing a Crowdcube

We came across this -

9. Investors’ appetite for niche, complex businesses will grow.
We’re already seeing companies from specialist sectors, which address highly complex business and social problems, successfully attracting investment through alternative finance. Biotech company Cell Therapy, for example, has just funded on Crowdcube – and this is the kind of business we didn’t expect to be approaching us four years ago. As the number of registered investors on crowdfunding platforms rises – we expect to have as many as 300,000 on Crowdcube by the end of 2015 – the understanding and range of interests of the investor base broadens and deepens, increasing the capacity for niche businesses to find their audience.
10. Entrepreneurs will take the opportunity to make an exit.
2015 will mark three to four years since the first crowdfunded businesses launched, and it’s likely that entrepreneurs will start taking the chance to exit, and the investors who backed them will get a return as they’re successfully sold.  That is an incredibly exciting prospect.

Its from the Crowdcube Pring Dept's 10 predictions for 2015.

No.9 - Cell Therapy could be interesting. They were due to IPO this year but as with most businesses in this sector, timing is always fraught. However although the Crowdcube projections are the usual rubbish, the company is making progress and may yet come good.

It seems highly unlikely that the investor number will be even close to 300,000 - its currently at 198k. Of course this is now known as doing a Crowdcube. It helps to explain why all of their business plans contain projections you can half before they make sense.

No.10 - Wow! E car Club aside and this was a deal forced on shareholders who would have done far better to stay in, this prediction looks laughable for 2016 let alone this year. The missing ingredient is the simple fact that entrepreneurs dont sell businesses - buyers buy them. Where are the Crowdcube businesses anyone would want to buy? They dont exist on this planet.

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