Monday, 7 March 2016
Renovagen now versus Renovagen in 2014 - fudging the valuation.
Renovagen are back on Crowdcube raising £600k at a company value of £3m
They raised £220k in late 2014 at a value of £1.5m. So happy Corwdcube investors have yet again made a small fortune.
Here is a direct comparison between what they predicted in 2014 and what they are predicting now. The blue figures are the new actuals (2015) and projections in the live pitch.
2015 Turnover £900,000 EBITDA -£ 34,000
2015 MkII Turnover £ 85,000 EBITDA -£137,000
2016 Turnover £4.5m EBITDA £454,000
2016 MkII Turnover £1.48m EBITDA £155,000
2017 Turnover £15m EBITDA £1.34m
2017 MkII Turnover £9.95m EBITDA £ 852,000
2018 Turnover £42m EBITDA £4.93m
2018 MkII Turnover £25m EBITDA £1.73m
So a company expected to be making only 35% of the EBITDA in the 2014 projections, is now worth twice as much as it was then. How is that possible? Well quite simply it is only possible because all of these figure are complete and utter fantasy - they are meaningless. If they had any meaning a company halving its projections, would logically have to be worth less than it was before.
Of course you will not get this comparison anywhere else but here, certainly not on Crowdcube's site. This is happening time and time again. We are not saying that Renovagen are a poor investment or that they might not go on to be very successful. The point is the platform is clearly misleading people by fudging the valuations. As clear as night follows day.