Sunday, 17 January 2016
Seedrs' £650k raise Dipstix calls it a day after 14 months.
Little more than a year later, they are closing via an MVL.
We dont have the statement of affairs yet, but it appears from a letter sent to all shareholders that things just didnt work out as planned. We had guessed that.
In the letter, kindly forwarded to us by a reader, the company states that its core market (the one it waxed lyrical about only 14 months ago) had proven too expenseive to aquire when compared to its revenue per customer.
Call us old fashioned but isnt that a round about way of saying 'Our business model isnt any bloody good'? It does stretch the bouinds the credibility to claim in November 2014 that retail customers are the core market and to say in November 2015 that they are not.
Valued at almost £2m when the raise on Seedrs took place (!), it will be interesting to see what happened to the £650k.
Clearly someone, somehwere, misread the levels.