Wednesday, 14 October 2015
Cauli rice completes on Crowdcube but beware the sales figures
Congratulations to Cauli Rice for completing its £500k raise in just a few days.
We noticed that the sales figures put out in the last couple of days by the CEO of £127k for month 1 - which is way ahead of the pitch's projections - have excited great interest.
We would humbly point out two things. Firstly this CEO has a history of promoting stunning 'sales' figures that in the end turn out to be not quite so useful. Righteous, her other company which is now running itself, used a new large overseas contract it had recently signed for export to push through one its raises on Crowdcube. When the company came back for more cash a few months later, it was forced to reveal that this deal had not been followed through with further orders - cashflow had crashed and its was back to the drawing board. Why - well simply because the product had not sold as the importer had hoped. The contract was cancelled.
The point being that Cauli Rice has only just gone on sale in its current listings. This £127k will be the first invoicing for the initial stock and it does not mean that this level of sales is a given - the public have NOT purchased £127k of Cauli's product. Supermarkets are notoriously fickle and delisting is far quicker than listing. Its push not pull through sales - the follow on orders for Righteous never materialised and to assume that these initial orders for Cauli will result in pull through follow on ones, is dangerous.
Of course all of this is left without comment on Crowdcube but Caveat Emptor.