Bedlam Brewery makes great beer. They raised £515k in 2016 on Crowdcube. Now they are back looking for another £800k. Claims of success do not tally with our numbers.
In 2016 Bedlam made various projections on revenues. Well lets just say that now we are in 2019, we can see very clearly that they have missed these by a long way. Readers here know this is a familiar story.
Yet in their current pitch on Crowdcube there is no mention of this shortfall. They simply state that the CAGR is plus 41% over the last 3 years. As we keep on saying an increase of CAGR from a tiny base is of no use whatsoever. CAGR should be banned. In this instance the use of it to extrapolate the next 3 years growth is farcical.
You may decide that the perks and beer are worth supporting and we wouldnt argue with that. But for goodness sake guys be a little more honest with your investors and drinkers. You have promised Bob Beamon and delivered Felicity Kendal. The reason for this latest round is pretty simple - you need cash as the sales are so far short of your plans that they haven't produced enough.
At the very least investors should be asking why the company has delivered such small revenues on the back of a £500k plus investment? Are the next three years projections sensible and will cash run out again. There was no mention in 2016 of a new raise of another £800k 3 years later.
You need to get all over the Nutmeg raise. Massive conflict of interest with balderton, huge Crowdcube investor outcry. Smells really bad.
ReplyDeleteI can see some unrest but Im not sure its worth getting excited about. Of course Balderton etc are getting a better deal than the Crowd - even if the claim is they are not. Balderton are worth a lot more to Nutmeg then you and me. My advice is invest in the core offer at the valuation offered allowing for future dilution that will inevitably blow you away, only if you believe the company will make it. Balderton backed Crowdcube which says a lot for Balderton. Or if you dont like the way they have approached this then vote with your feet and dont back it. But dont back it and complain at the same time!! In terms of the games Crowdcube get up to, this is in no way exceptional.
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