Sustainable Power took £1.84m off Crowdcube investors in 2014. The company showed projected profits of £2.7m and £13m for 2016 and 2017. How have they really done?
If you were to be kind, you would have to say - could try harder. In yet another example of how Crowdcube investors are being misled by the financials the platform promotes in these successfully funded businesses, we find reality is a hard task master.
SP losses for 2016 were £1.5m. According to the accounts, the directors thought this was normal for a company gearing up for production. Well that maybe so but then why tell Crowdcube a whole load of twoddle? Ah.......... it's an incentive thing again. If you had told them the realistic projections, you wouldnt have raised £10.
Accounts for 17 are late but what are the chances the company getting close to a £13m profit? No one with any experience in start ups expects all companies to always smash their projections. But out 400 companies we have on file, when only a handful get anywhere close to the projections used to promote their funding, something is wrong in the system. SP is the norm for Crowdcube funded companies; not the exception.