Monday, 25 July 2016

MBJ Crowdcube pitch illustrates the stupidity of some equity crowdfunding


Sorry to bang on about this - but it is important. To go from a £300k turnover to £3m turnover in 12 months you have be pretty special. Spending  £168k on marketing will not do it. 

Apart from the fact that these guys at MJB have no track record of achieving this monumental leap, for the first three years they plod along and then WHAM, it goes ballistic. Then it doubles again just for good measure. 

They are now fully funded and indeed are overfunding to almost double their target - so we must be wrong. Oddly no one has asked them how they are going to achieve this. They dont ask either why the GPM drops next year to 17% and then rebounds back to the 45/55% mark, which is its norm. Or why the personnel figures drop by almost 50% and then go up by a factor of 3. 

Pick a number, yes any number it doesnt really matter. 

I suppose the answer is why bother asking questions about Crowdcube projections as we all know they are total tosh.

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