Tuesday, 5 January 2016
New Year, same old Crowdcube.
Crowdcube's latest pitch, Ethos, may prove a massive success.
But it would help if at the start of the New Year, they could publish accurate information.
Ethos states in its heading it is a chain of keep fit /yoga studios. Currently this chain has just the one outlet. Sorry but that is not a chain in anyone's dream.
The company claim to have recently raised £275k in equity finance, which is significant as they had none in the business before and it was technically insolvent. However the AR is late (just) and their filings have no record of this transaction, which apparently valued the company at just over £3m. Today's value, without the paperwork to confirm any investment, is put at almost £4.5m.
How difficult would it have been to ensure the AR had been filed and the terms of the equity raise made plain before the pitch went live? Do they really expect investors to take Crowdcube's word for it - after the recent debacle with Crumpet Cashmere?