Crowdcube have produced their latest quarter's report for July to Sept 2017. Read it and see if you can make sense of it.
This is a report on the quarter for the activity of their ECF business - ie what has happened on the platform. It's a little downbeat for the CC Glitz Dept. But then they have their reasons.
They open with a very unimpressive statement that they had revenues of £1m. As their costs are around £2m that's not great. The cover infographic is honest enough to include the scandal ridden Ethos Global, now Soma, logo right next to the C for Crowdcube.
They go to say that they have a record number of new pitches - which is a bit like a car dealer saying they have had a record number of new cars on sale. It tells you nothing about performance.
Then they say that £25.6m was invested into pitches on the platform with 31 business raising £14.4m between July and September. That is exactly what they state. What is the extra £10.2m? They only have one platform in the UK so it would be misleading to include their satellite businesses in Spain and Ireland and in any event this turnover is insignificant. Is this misleading?
They are happy to announce that their average commission has gone from well under 5% to over 5%. You do the math with the revenue at £1m on sales of £25.4m.
If you count the number of signed off pitches that have raised money (from the company's own site), you get a total of under £12m for the period. So for example this doesnt include the new food pitch which raised over £1m (its target) yesterday but is still due to run for another 28 days. CC do include this. It also doesnt include the US 'partnership' which brought Keen Homes to our shores and has 'raised' over £2.8m but most of it in the US on another platform. But knowing CC they probably will include this.
The big news is apparently that their app has been a success. It took over £5m of investment, What they dont ask is if this £5m is new or just would have been put through the website? Our guess is that the app is a diversion and total waste of time. Since when did serious investors need to book a table for two and invest in a newco whilst enjoying the meal?
That all seems as clear as mud.
What is clear is that with revenues of £1m, Crowdcube are heading for more large losses, with the probability of them being larger than 2015 or 2016. This whilst their closest rivals disappear in the opposite direction.