Nutmeg have announced that they will be raising around £10m on Crowdcube this year. The valuation is rumoured to be £1bn. That is 4 times the valuation that VCs like Goldman Sachs, paid for the company two months ago. What a bargain?
In what really appears to be a clumsy PR stunt, Nutmeg has announced it will be on Crowdcube later this year. But investors have to be customers. Nutmeg claim that this will democratise the company. This is apparently how we are now to view 'democracy' in action. Join first then you can invest.
Nutmeg is making impressive losses and recently secured some serious VC backing (Goldman) - at a valuation of ~ £245m - so the Crowd is being asked to cough up 4 times that. An increase in 2 months which for a loss making outfit is impressive.
Nutmeg don't really offer much that you cant, with a little gumption, get for yourself for free. Unfortunately that very idea, making the possible achievable with zero effort, has become a highly influential business model. If I'm brutally frank it's rubbish and should be called out as such before we all lose the will to live.
Valuation is the same as the last round of funding.
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