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Friday, 7 April 2017

The JIVR bike freewheeling journey could be coming to an end.


JIVR raised over £160k on Crowdcube in 2014. It also raised over £120k on Kickstarter - where they stated the estimated delivery was April 2015. To date nothing has been delivered and the accounts are overdue with a compulsory closure notice sitting on their file.

It is a great looking electric bike but at well over £2000 retail, I suppose it should be. We just wonder about its demand level.

Why the company cant manage to file the appropriate accounts on time isnt clear, but it does indicate that the team may not be very efficient.

When they pitched on Crowdcube in 2014, they gave a specific list of outcomes for 2016, the year they predicted they would sell the business. 

Forecasted valuation as of December 2016:

P/E    Valuation    1st Round Investors’ Stake   Equity Stake Valuation     ROI (pre-tax)
 15    £21,532,039                17.5%                          £3,768,106                 2,512%
 20    £28,709,385                17.5%                          £5,024,142                 3,349%
 25    £35,886,731                17.5%                          £6,280,177                 4,186%

Of course a PE ratio demands an E to make it work. They have no E except for the rather tenuous pre sales they are trying off their website. The accounts will show the extent of the damage if they are filed. Around £500k of new money was invested in 2016, so there is still hope. Probably best to put the Crowdcube pitch figures down as a joke in poor taste. 

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