Wednesday, 7 November 2018

Crowdcube raising more we go with the company that knocks the C out of exiting.

Use your Imaginations

Crowdcube looking to raise several million at a value as yet undisclosed. Where will the madness end? £6.7m already raised from existing institutional investors.

In the usual Crowdcube PRing sent out this morning to likely investors, Crowdcube talk a lot about their positive numbers. £335m has been successfully invested via the platform since 2011 - they trumpet. What does 'success' here mean? It has certainly been successfully transacted from the punters on the site to the companies pitching - but surely that is not too difficult. What has really happened to it since then. On this the PRing is eerily silent. Well of course it is; there isnt any good news

The answers are there for anyone willing to look. 

Yet another year has gone by with no real exits and plenty of failures; some of a very questionable nature. Crowdcube is still a long way off BE - and that is the real reason it needs yet more cash. An annual burn rate in excess of £8m with revenues 'projected' to be £6m. And we all know what Crowdcube projections mean. 

You can expect to see CC on Channel 4 soon as they done some sort of deal there. Which is a shame as I did like watching C4, especially their news. 

For all you punters who just cant keep you hands out of your pockets - the great opening of this latest farce is on 14th of this month. You have a week to get exited!!


  1. From the above...."since 2011....there isnt any good news"....Crowdcube (quite literally) take you all for fools.

    I'd even argue Crowdcube awaken the approaching entrepreneur to the fact that we are all idiots (we must be) and direct them to turn their moral compass 180.

    You are all punters and fair game.

  2. (plucking at straws) CC will never IPO (period) nobody in their right mind would consider a trade buy.
    My theory is this, the ship is sinking, one last huge pay rise for the clowns before its submersion.
    I'll even contribute if they fade into the abyss.

    1. Unbelievably there are some seasoned VC's with a lot of skin in the game re Crowdcube if I remember correctly...

  3. Of course instead of all of the above it is possible that CC have got it wrong - equity CF might work but it wont using their model.

  4. I see they're starting to charge 1.5% to investors from next week. Be interesting to see if that helps revenues or puts people off...

  5. Thnaks I didnt know that. So now not only can you invest and lose all your money but you can pay Crowdcube to do it. It may not be a morally justifiable businesses on nay level but you have to hand to Luke and Darren they sure know how to milk it. 1.5% on the invested total pa of say £100m gives them an extra £1.5m revenue, which will take them close to BE if it doesnt collapse investor support. I dont beleive it will put people off if they are already willing to invest in the sort ot tripe the platform offers now - £15 on a 1000 investment isnt going to pout them off. In fact the more you look at it the more it seems like a great idea - from CC's perspective. However the same problem persists - they have no idea as a company what is and what is not an investible company. They simply do not have that tool in their kit. Never have but they are too arrogant to admit it. Im surprised the VCs who must be running the show by now, have not binned Luke and Darren and got in people who can crack this very tough nut. Im not available :))

  6. There's a minimum charge of 50p so those investing a tenner will pay 5%. I expect this move is designed to put them off as it's a lot of paperwork for a tenner. There's also a maximum charge of £250 for those putting in serious money.

  7. CrowdCube have updated their site with details of the fees -

    At least one company raising at the moment (WiseAlpha) is encouraging their investors to get in before the 12th when the fees take effect.