Friday, 21 July 2017

What's in a word?

Black Bee are raising on Crowdcube. We wish they would be more honest; for the sake of the bees.

Im afraid this is something we go on about. Simply because Crowdcube continue to mislead their investors.

So, if you read this - 

Following the success of London Postcode Honey, the entrepreneurial duo has set up Black Bee Honey to offer a selection of raw, single origin British honey.

as the headline to a pitch trying to sell you shares for cash on a FCA regulated website, which only sells interests in commercial companies, how would you take the meaning of the word 'success'. We think it implies or even just means, financial success. Crowdcube is not a platform promoting social benefits, it is a pure investment for return operation - albeit not a very good one from the latter's perspective.

If you bother to check the facts behind this 'success' claim, then there is very little to shout about. Firstly there is no such company as London Postcode Honey - it was just their jar name. Put simply Barnes and Webb Ltd (aka LPH and the 2 founders of Black Bee's previous 'success') makes very little money - £3,000 in 2016. It seems to have very low activity levels. Nothing wrong with that per se but why dress it up as something else on a site that is supposed to be promoting only verified facts. Another CIC company they run has been closed with only dormant accounts. They have also used a different version of their names for this newco  - why? To find out about Barnes and Webb Ltd you have to dig around - not under the names given in the CC pitch. Based on this, they are valuing the newco at £750k. 

Isn't it time we had a fixed minimum standard for the information the platforms supply. So for example in this case, you cant use the word success unless there is something to prove it. And you must declare all your current and previous limited companies and other businesses with relevant details, so they can be easily traced at CH. Surely that's not too onerous for a website selling company equity for cash? Armed with the correct information, we can then decide if their past efforts were a success.

We love bees and spend a great of time making a home for them - that pic is in my garden. So people who also have the passion are good people - good people led down the wrong path by the platform no doubt. It just makes you look a little foolish and not very trustworthy. Which in the end will harm the bees. A shame.

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