Saturday, 15 October 2016

The worst jounalism on the planet - Borrow My Doggy refunds via Angels Den

Various equity crowdfunding publications have recently carried a story about the funding of Borrow My Doggy. 

The same 'journalists' ran another story about the same company last year. Where are they coming from? Are they accurate? 

Here are the various stories -

Example  - ''On Friday (7th Oct), dog lovers service BorrowMyDoggy officially closed its equity crowdfunding campaign on Angels Den. The company successfully secured its minimum £1 million funding goal as it continues to develop its UK and Ireland dog services.'' The pitch is still open. 

Example - ''BorrowMyDoggy launched a Crowdcube campaign last year to raise £575,000, but then shut down the initiative after the company secured a £1.5 million investment from IW Capital through Crowdfinders, a crowdfunding event that brings investors and companies together for face-to-face pitches.'' The £1.5m has still not been invested.

The list goes on - just google it.

So the story told is that BMD pulled out of a successful Crowdcube raise because they had received £1.5m in funding from an event run by Crowdfinders. The investor was IW Capital, apparently. IW Capital is run by the same guys who run Crowdfinders. They are essentially marketeers. They have a loose group of associated ECF companies under the umbrella marketing name Race for Scale. What this actually does in the real world is not entirely clear. Claims that it invested in various companies are not backed up by filings at CH, so we assume they punt investments rather than take them for their own account.  

The story goes on to say that Borrow My Doggy have just completed a £1m raise on Angels Den. In fact this a £1.6m raise (according to the platform) and is still active. The money raised so far, £1m, includes £879k from IW Capital (listed on Angels Den as a HNW individual) and the rest is made up by 4 investors - what you might call a very small crowd . For a company claiming to have 300,000 members you might expect a few of them to be investing? IW Capital have told us that Angels Den have their PR all wrong but have not explained exactly what this means.

So a year later some of the money reported as raised does appear to be there - subject to this Angels Den transaction actually completing. Remember the last time someone claimed they had raised £1.5m  - they hadnt.

Back in April this year the IW Capital press machine was whirring  - this is from - ''IW Capital has committed £1.65m in funds raised for Borrow my Doggy. I love that company, it’s awesome,” said Davis, who is also the chief executive of IW Capital. So that's the same £1.65m that BMD is currently crowdfunding on Angels Den - or is it? April to October is 6 months but no investment even though its was 'committed'  - but was it? Who the hell knows. It's like wadding through a never ending mangrove swamp. 

Essentially both stories are complete rubbish. They have populated the internet as the truth, been picked up and regurgitated by lazy journalists. They are now facts. 

We dont know why they pulled out of their Crowdcube pitch, which was going well. Maybe someone out there does? The Crowdcube projections have been revamped for Angels Den with a much healthier looking EBITDA.

Confused? Well we are pretty sure that's the idea. 

And so it goes on. 

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