Wrap it Up took £760k off 560 Crowdcube investors in 2015. Now two years on how have they performed against their Crowdcube offer?
Well you guessed it.Yet another hopeless failure.
The Crowdcube version had profits for the year just filed (Dec 17) of £670k. The company actually made losses of £230k and since funding, has never made a bean despite claiming to be profit making on the pitch.
The pitch emphasises the new central kitchen which can service up to 100 outlets. Hell that is fantastic if you are using it but with only 17 outlets on their website some might say this a total waste of capex.
We shall have to wait and see what the outcome is - the company is complicated see here and there are new non related Wrap it Ups popping up - so the brand is hardly valuable. Units that do exist and are run by this Wrap it Up, get very average reviews - not what investors might want in a growth company.
The whole picture is very confusing. It does beggar belief that 560 investors could give away £760k for this at a dreamy £6.5m and not invest in a current pitch by Appetise, which offers value for money and a real chance of success. You have to wonder at the sophistication of this crowd.