We have moved. You will now be redirected to our new site ECF.BUZZ

Wednesday, 14 November 2018

Some of Crowdcube's successes recently filed accounts - we just report the facts

Below are some Crowdcube funded companies who have recently filed accounts. This will give you an idea of how most of these companies do, post funding.

I'm not an advocate of the apologists' theory, that all starts ups have to miss their projections because that is the way it is. Why, if we have known this for so long, have we not adjusted the projections? Are we all really that stupid? Of course the the other answer is that these projections are being used to encourage investment. Well if nearly all of the companies that have funded via Crowdcube have missed their projections by many hundred percents, what other logical answer is there?

A point often missed in this debate is the fact that these projections are used to calculate the current value of the company; so they dictate the price of the shares being offered to consumers. So it's a bit like a buying a house which is yet to be built on a spec that turns out to be a million miles away from the poorly finished, shabby building. You simply wouldnt pay that price - nor would anyone expect you to. 

You do have to ask  - what is the more important to know - the number of raises Crowdcube have facilitated and the money they have raised or what has happened to those companies since? Surely the latter is the true test of how the platform is doing? What the platform's PR tells everyone ad nauseam is the former - the latter is never ever mentioned. 

Try these recent filings - 

Dirt Factory  - loss of just £13k but hasnt opened a Dirt Factory anywhere yet.
Facewatch    - loss of £550k versus projected profit of £2.9m
Hire Space   - loss of £900k versus projectd profit of £550k
Silkfred and Hab we have already covered.
Enistic          - loss of £55k versus projected profit of £3m

If you have read a few of our posts, you will know that this is the norm.

One piece of good news - British Boxers, which had sensible projections, came in bang on its projected £28k loss. So it is possible. Hats(or should that be boxers) off. 

No comments:

Post a Comment