Simply Nonsense

We really are in a bit of mess.

Let me tell you why.

We'll keep names out of this for now.

A company pitched on the UK's largest platform in May 2016 and took over £700k off investors. The pitch details showed there were no more plans to raise any more capital via the equity route. Dilution comes to mind.

That was 7 months ago.

Now the same company is using another platform to raise equity finance of £1.5m at a valuation that has increased in these 7 months by 33%.

Hang on. So they must be doing well right?

The projections for the 2016 raise showed revenues of 2016 of £1.9m and increasing at great speed for 2017 onwards.

7 months later the new projections on the new site show actual revenues for 2016 of just £1.1m - or considerably less than the actual/projected figure given to investors in round 1. WTF. During the first raise half of 2016 had already been completed. The loss for the year is a third greater than the one the company projected just 7 months ago.

As you might expect the projected income and EBITDA for subsequent years has also taken a massive dive in the second pitch. But the valuation has shot up.

This discrepancy isnt mentioned at all in the new pitch on the new site. It's like this company has a record of delivering on its commitments.

The people involved should really know better. Im sure they do but they thought they could get away with it. Platforms desperate for income are happy to short circuit all the usual rules. It's a total farce out there.