Tuesday, 10 July 2018

And here we go again Zzish are back on Crowdcube having lost £1.4m last year. Yet they have passed their target.


So  it appears you can tell Crowdcube investors whatever you like - they hand over cash anyway. Zzish raised £1.3m last year. Now they have burned this as their model didnt work. With a doubled valuation they are back and have already cracked their obviously fake target of £300k.

It is not until you read the forum on ZZish that you get the real picture. The launch in the US didnt work - the service/product wasnt right for its target market. You have to ask if they bothered to ask  schools in the US what it was they wanted, before offering them a product that wasnt a fit. £1.5m of loss later, they have an idea of what the required product is. That is someway to run a business. Is it possible to charge the enemy firing blanks - realise your mistake halfway through, regroup, reload with live ammunition and charge again with success?? We shall see.

In the pitch you would be forgiven for believing that all had gone to plan. So why do they do that? Why lie to investors? Just be honest and say ok we got it wrong but now we have got it right and we can go places. Which they can if what they say is correct. Mind you, the trust has just been shattered so maybe people will not believe them now. For sure they need far more than £300k.

One good point is that they have at least had the nous and honesty to file their accounts to YE May18. This is indeed very rare on Crowdcube - maybe a first.

As the Q shows, if they were going to do that, then there wasnt much point in trying to cover up the failure of 2017.


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