A new chocolate facility is to open in York. The final £250k for the project will be raised on Crowdcube starting next week. We did some digging.
The outline plans seems ok and the girl behind them has done some good things with her PR. But the press so far have failed to mention the simple fact that the business she has run since 2011, York Cocoa House Ltd, is loss making and has a large negative balance on its 2015 accounts. The 2016 ones are due in September 17 so I would certainly want to see those. The company did raise a small sum at the start of 2017 and has gathered various bits of funding from local sources. Up until this, they had had no equity investment.
It would be typical of CC to ignore this fact as irrelevant. And I dont doubt she will raise the money based on her rewards, who can resist good chocolate, and friends. But is it a good idea? It certainly is not scalable and to date, all she has proven is how to lose cash. You would expect her business after 6 years trading, to at least be at BE.
As you would expect the valuation for the new factory business, yet to be commissioned, is typical Crowdcube fantasy. Expect this come to come down if you dont all do your usual impersonation of a lemming.
This one is a very good example for why all ECF campaigning companies should be required to produce full accounts for 2 years prior and at least 2 years afterwards.
Anyway, off for week or so and will look forward to the full pitch when it goes live.