Emoov recently amalgamated with two other loss making online estate agents, then they came back to Crowdcube and raised over £1m. The valuation during the raise was £102m. Now they have sent out an email revisiting this valuation and telling SHs the valuation is to be £51m - adding that this is good for them as they can have twice the number of shares.
Hmmm. What is 2% of 0? The same I think as 4% of 0.
In 2015, when Emoov raised £2.6m on Crowdcube, they were valued (by Emoov) at around £22m. So even £51m, albeit a paper value, is double this.
We wrote about their last raise here
We wonder if the management have been told by institutions that £102m is way too rich for the IPO they say will happen in March2019 - even though Emoov themselves predict this will be a £130m. Halving your valuation after you have raised £1m - however you did it - is crass. It suggests the management havent a clue.
If anyone had any doubt about the ridiculous valuations that Crowdcube allow/encourage, then this has to put it to bed. Crowdcube investors accepted £102m and are now, just weeks later, being told it's £51m. You couldnt make this up.
We wrote about their last raise here
We wonder if the management have been told by institutions that £102m is way too rich for the IPO they say will happen in March2019 - even though Emoov themselves predict this will be a £130m. Halving your valuation after you have raised £1m - however you did it - is crass. It suggests the management havent a clue.
If anyone had any doubt about the ridiculous valuations that Crowdcube allow/encourage, then this has to put it to bed. Crowdcube investors accepted £102m and are now, just weeks later, being told it's £51m. You couldnt make this up.
Rob, couldn't agree more - not really sure what is going on at emoov but it's bizarre and certainly not for the benefit of small, crowding funding shareholders. I invested a (luckily, v. small) amount in the 2015 round and the share price at that point was £0.52. Come this year, they were raising at a share price of £0.68 despite the almost x5 valuation they were touting. A c.30% illiquid return in 3 years didn't seem like success to me so I didn't get involved in this round. They have got to where they are with massive dilution and I suspect that will continue going forward. If the value has been cut in half following this years raise, it now means 2015 Crowdcube shareholders are underwater by 35%! Yet the rhetoric from management is that they are a resounding success - can't see how that makes any sense!
ReplyDeleteHi Rob, I have not received any email and the CC page still shows the £104k valuation. What is your source?
ReplyDeleteDirect with a SH and the email sent out by the Co - no idea why you havent had it. But knowing CC it will be some F up somewhere. Ask them. Please let me know what they say. Or of course it may not go through.
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