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Friday 16 October 2015

Sit tight and valuations will come down

If you must throw your money at the sort of pitches that Crowdcube are publishing, then our advice is to sit tight  - all of you - until the pitch gets near to its end date. Post a few queries about the over valuation. And wait.

As with so many of the completed pithes recently, the founders will move the equity offer in your favour, often by as much a 50%. Crowdcube will oblige by extending the pitch ad infinitum - its their only way of paying their £2m annual administration costs and you will end up with a far greater share of nothing.

Current examples are Early Bird up 25%, Empiribox up by ~20% and GF Foods up by 55%. We wouldnt recommend any of them but we like the idea that the Crowd is at last learning that it has some say.

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