Wednesday, 16 December 2015

Stickyboard raised £56k on Crowdcube last year.

In the pitch they planned to raise another £200k that year - presumably to activate the plans that was projected to give them a handsome £62k profit.

Clearly something went wrong and accounts for YE March 2015 show a loss of £50k which leaves the company with a negative book value of just under £200k. Capital raised was only £65k.

So as with nearly all Crowdcube pitches, the financial projections have turned out to be total nonsense. Investors seem to have been led to believe that the extra £200k was a given. Failure to raise this is a good enough explanation for the continuing losses. Working capital being an essential.

It would be nice just once and while to report on a company financed through Crowdcube that has got somewhere close to its projections.

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