Wednesday, 6 January 2016
Another Crowdcube success misses its targets
There is a reason why XXXXXX (name removed for legal reasons) produce the only stand up mobility vehicle.
A clue is in the only review they have on Amazon - a 2 star review saying the whole thing was unstable and customer service was appalling.
No wonder then that the company, which raised over £200k on Crowdcube in 2014, has just filed accounts which are well off the projections published on the ECf platform. When we say well off, we mean it.
Projections had the company making a healthy net profit of £450k in its first year after funding. The accounts show a £70k loss. Even allowing for the usual Crowdcube misalignment between projections and actuals, this miss is a good one.
Sales to July 2016 were projected to be almost £3m with profits topping £1.6m.
Anyone can make up figures, the game surely has to be who can come somewhere near to delivering on them. It certainly doesnt look like being Crowdcube.