A pitch that funded on Crowdcube in 2011 has just published its 2014/15 accounts. That is at the end of its 3 year projections - the ones used to sell the equity.
We wont mention the name of this company as they are still trying hard to make progress and we wouldn't want to damage that.
The pitch 4 years ago showed a 3 year projection with turnover for 14/15 of £1.5m and net profit of £150k. This allowed the company to sell equity and show a handsome return for investors. It was all, as ever, sanctioned and due dildoed by the number crunchers at Crowdcube.
In reality the turnover for 14/15 was £120k and profits came to £11k. Roughly the same margins, so they should be applauded for that. This figure is 50% lower than the actual turnover declared by the company for 2010/11, as is the profit. However this 2010/11 'actual' posted in the Crowdcube pitch was in fact wrong according to the accounts filed at CH for that year. Hard to know what to believe.
It is just another example and by goodness there have been a plethora of them, of how Crowdcube allow pitches to publish completely laughable projections so that equity can be sold and a 'return' shown to be a 'reality'.
Sooner or later surely the magic that keeps the carpet flying must run out. It is almost unbelievable that it has not already. But then it is this belief that the next one will be the one, that keeps both The Lottery and Crowdcube going.
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