Thursday, 14 July 2016

Crowdcube get £39m in pledges for their own pitch

Crowdcube have had pledges amounting to £39m for their own raise, without any plans or financials being published.

We have to say well done - whatever it is you are selling, there are a lot people who still want to buy into it.

Despite the now numerous examples of the platforms legendary lack of DD and its cavalier attitude to ROI, people are literally piling in; knocking each other over in the mad scramble to hand over their cash.

For a company that last filed accounts showing a £4m loss on a £2m turnover, operating in a sector that is now in limbo with regards to Brexit, with no substantial ROI's of note to date, this is truly awesome. For the company to get to just BE they have to increase their last year turnover several fold and on this market we cant see that happening. In fact we cant it happening full stop. One consistent item is that they, like all of their successful pitches, are nowhere near to the projections they published in their last cash dump.

We really must be missing the point. Time To Surrender.

7 comments:

  1. They are only pledges and those pledges were not specific amount but ranges e.g. 10-100 pound, 100-1000 pounds, 1000-10000 pounds,..etc. So how CC came to that number 39M pounds I do not know. Did they take to upper bound of those intervls, the mid point? who knows? It sounds to me like more marketing on their part. I know hat I wasn't serious with my pledge. I do not believe for one second that they have been pledged 39M. I am willing to bet that they will not see 39M in funding.

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  2. This is BS. I do not believe this is real.

    I need to work out a way to short this stock. The investing public cannot be this stupid.

    as soon as the FUCA take away their ability to pledge with CC are finished.

    This 39M is expressions of interest, not even pledges. It is all going to lead to huge investor losses and FCA firms will pick up the bill.

    Anyway, what do i care...

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  3. Don't surrender Rob. Even the FCA has mentioned your blog as a source (which makes me wonder why they haven't done anything about everything you describe here...)

    If I were Balderton et al I'd be taking my money out at this round. Don't be surprised if they do if £40m materialise. When the music stops, who will be holding the shares?

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  4. They will hit their target in 60 seconds or less I'd say because there are plenty of blind sheep around that company. The £39m means nothing. I personally entered £1m just to see if I would get any kind of preferential treatment ( I didn't).

    CC and or Seedrs need to grow exponentially then IPO within the next few years as there is only going to be more and more bad news coming from the crowdfunding industry as time goes by. It's a race. ....Imagine if CC floated, jesus, they'd have to replace the entire management team pretty quickly.

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  5. I value the company at £0 so I think the £39 million new investment will give the new investors 100% ownership[ so the old investors may become slightly diluted.. UNLESS... Crowdcube set a ridiculous valuation? They wouldn't do that though, would they? This raise epitomises everything that is wrong with their brand, their style and the industry.

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  6. On the pledge page they gave you an option to sell your existing holding (no guarantees of course), if you have one.

    Upon investigation, I was delighted to discover my 2013 investment has almost quintupled in "value", and is now "worth" 29p a share!

    This page is now showing 404Error...

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  7. Reached their 5m target within a few hours and more than 2000 investors, then slowed down as all EIS relief was used up. Not bad for the first day.

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