Equity Crowdfunding only has one FCA rule to obey - do not mislead investors.
Well you should check carefully the numbers being used by Daily Dose in their second CC raise. You might be surprised by the real ones when you compare them to the claims and the original CC financials. What exactly does 'Since 2016, monthly turnover has increased by 1400%' mean? It certainly cant mean that the monthly average turnover is up by 1400% as the figures show this isnt so. Since 2016 the revenue figure is up around 650%. Now this is good viewed in isolation but it aint 1400% or even close.
So does it mean that for the month of July 2018 ONLY, revenues were 1400% higher than they were in July 2016? Well yes that seems to be true. But really so what? And why dont they state that instead of making it sound as though turnover since 2016 has gone up 1400%.
Well that may have something to do with the fact that the revenues for 2018 are around half what they said they would be. What about the numbers used to sell the equity 2 years ago? Well according to the figures they have used, the turnover has gone up from £90k to £573k, when it was projected to go to ~£1.2m by Aug 2018. (YE dates differ). A healthy profit of ~£200k is now a loss.
How misleading do you have to be to be misleading?
Are we surprised - certainly not. This has been commonplace on Crowdcube since 2011 but we did think they were trying to do better. Clearly we were misled.
