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Friday, 5 July 2019

BeerBods sells out to ABV



Beerbods raised a total of £400k on Crowdcube in two rounds. Now Matt Lane has sold the business to Beer Hawk, recently acquired by ABV incubator ZX Ventures. 


This is exactly the sort of transaction that will make equity crowdfunding work; if it gives investors in BeerBods a return. Lane admits that the sale is forced - ie it's the only option if the company wants to make any immediate headway.

No figures have been disclosed although shareholders will know shortly. In the first round Beerbods was valued at around £400k and then a year later at £2.5m post money. So looks like the 101 first rounders will see a healthy uplift. Not so sure about the others. Accounts show a loss for the year to May18 of £80k.

Lets us know if you know.

3 comments:

  1. When you refer to companies in loss (not just the above case, but in general), is this just the accounting P&L?

    I think you need the cashflow statements in conjunction...A company could deliberately be producing a loss (by accelerating depreciation for example)...but generating positive cashflow behind the scenes. This is quite common practice, and brings forward cash when they likely most need it.

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  2. Hi - I agree it would be helpful but with the Victorian system this country operates with account filing, it simply isnt possible. We have enough evidence that suggests most of the 1300 companies we have on file if they are loss making in a major sense then it is a genuine cash loss. You can also get clues from the current assets and if depreciation is accelerated then this should be the notes - but is not always. We are happy to alter our numbers of a company can shwo they are wrong.

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    Replies
    1. We will be covering all of this on the new site once it launches on 10th July.

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