Rise Art appeared first on Crowdcube in 2016. They raised £516k. Now they are back again raising over £650k in a campaign that is on the edge of being successful. So well done. Valuation just under £10m.This is a comment on the standards of disclosure on Crowdcube rather than any comment on whether this company has a chance or not.
When asked a direct Q about how the business had performed compared to their 2016 projections, the waffle that follows defies description. Glowing reports of doubling turnover year on year does not tell the truth guys. Your projections showed turnover go from £518k to £2.26m, 2016 to 2017 and then from £2.26m to over £9m 2017 to 2018. The 2017 and 2018 numbers showed profits and the 2018 profit was over £5m. So what really went wrong?
Actual turnover (and this is presented throughout the pitch as a triumph) went from ~£500k in 2016 to just over £1m in 2017. So around 50% of the projection. There have only been large losses. So the projections were total nonsense. But when asked, they fail to admit this or in fact even refer to it - despite the directness of the Q demanding that they do so.
What is the point in producing this rubbish? No idea. Why do people believe anything these guys say - havent a clue. How can sensible people invest in this - totally baffled.
Crowdcube - Defying Logic.