Seedrs new metric gambit and a pitch currently half way to raising over £1m are both sure signs that market pressures have forced the platform to stoop to Crowdcube levels of openness.
We used to think Seedrs were amongst the good guys - the platforms who told it as it was and didnt play the PRing card. Those days are gone.
If their much heralded new metric, where they take imaginary share values to show investors how well they are doing, was not enough, we now have a pitch on the platform that has history when it comes to hoodwinking investors with its projections. It raised money in 2015 on another platform.
There is scant if any mention on Seedrs that this company has already used equity crowdfunding. There is absolutely no mention of the 2015 projections which the company has missed by several galaxies. The pitch and especially the video claim that the company is motoring. But just as an example the 2016 figures that have been created for this pitch show revenues of under £1m, when the 2015 projection was almost £3.5m. Even the year they pitched in was hammed up so they missed the projected revenues by over 100%. Add to this the crazy bungee jumping GPM, which always comes in well under projection, and you might wonder why Seedrs agreed to take these guys on. Perhaps they didnt know about the previous round or its fantasy figures?
All we are asking for is a basic standard of declaration - some might call it honesty. If this company is going to invent projections that it must have known it couldnt meet, to raise money, them surely it must be sensible for this fact to be known on its next attempt. If it had used the original platform again - it would have had to explain this gap in revenues and GPM. Instead it glosses over these unimportant things and talks about more important metrics like the numbers of Twitter and FB followers it has.
Seedrs now seem to be driven by the need to grab market share as Crowdcube tunnel their way ever faster into oblivion. They really dont need to use these tactics - Crowdcube will self implode and the market share will be theirs to share with the other sensible platforms. Credibility cant be repaired and they are in danger of losing theirs right now.