The evidence is now clear. The Crowdcube model doesnt work. You can find out why below. These are the facts that Crowdcube try to hide.
We mentioned facts - not PR management and spin. Simply impossible to get around, rock solid, stubborn old facts.
We have data for the Crowdcube businesses that have funded between 2011 and 2017 and have filed accounts to YE Dec2017 - ie they filed or were supposed to file by end of September 2018.
This accumulation is for 56 companies - so a substantial data set in terms of Crowdcube funding to YE 2017. We must add here that ALL of our other data for other filing dates (another 400 plus companies) has the same footprint. Another 16 companies are late filing and given their history we are not expecting them to provide any data that is outside this overwhelmingly strong pattern. These 56 companies are the ones still in business and do not include the failures to date or the very few that have changed hands - normally at a substantial loss. Cocoon being the latest example.
St Vibes is included in this 56 and if you had read their post here you would know that they have excelled. We have not included them in this commentary apart from in one instance below.
Of the 56, the year they funded breaks down as follows -
2011 - 1
2012 - 3
2013 - 1
2014 - 10
2015 - 18
2016 - 21
2017 - 2
So the bulk of the data is for companies that have been trading since their funding took place. This is important as you could not expect a company that received funding in 2017 to necessarily achieve much by the end of that year.
Of the 56 companies, only 5 provided a net profit. In all cases this was a small NP and was not even close to the NP they had projected. But it was a profit. However of these 5, none look like they will make it much further.
Investors put ~ £34m into these companies via Crowcube.
Of the 56, only 3 companies have got close to their Crowdcube promoted projections in any year since they funded and this was a smaller loss, due to running out money and having to refund.
The accumulated gap between the Crowdcube promoted projections and the real numbers is ~ minus £55m.
The total loss for the year to Dec 2017 for these 56 companies, including the profit for St Vibes (£0.5m), is ~ £20m.
So in conclusion, Crowdcube has facilitated £34m of investments into start ups filing accounts in September 2018, which has generated in YE Dec2017, a loss of £20m. This loss was supposed to be a NP of around £35m according to the projections promoted by the Crowdcube platform.
We think that beats their latest PR stunt of having 100 £1m raises. Cocoon is just the latest real example of what Crowdcube can achieve. How many more examples do you need?