Wrap it Up have raised £760k on Crowdcube. Now they are looking for more cash as their business struggles to get even close to the projections used to sell that equity. Another typical day at Crowdcube, you might say.
We have written about these guys before here
January to June 2018 sales fell back from the same period in 2017 - annualised, the revenue for 2018 looks likely to be around £5m. Projected revenues for the company back in 2015, showed £6m for 2017 and at a growth rate of 50% pa would have brought £9m for 2018. So someway off reality.
We wait to see what valuation they come up with for this new raise but it has to be lower than 2015 - unless of course they use Crowdcube.
Without the money, it looks like a bumpy ride for the company and its investors. Debt is at over £500k. As they cant really provide much in the way of hope for 2019 and beyond, why would anyone put more into this outfit unless the valuation is sensible? The company made a £230k loss in 2017 and with turnover down in 2018, the best bet is for a similar loss or a greater loss for 2018.