Otti Prams joins the logjam of Crowdcube funded companies going nowhere.

Otti Prams raised £89k on Crowdcube in 2015. For once ambitions seemed sensible - well for their failed 2016 second raise at any rate. Unfortunately even sensible seems to be beyond them.

More losses for YE Aug 2017 beg the Q - why were they ever on Crowdcube? These latest accounts have one line that reads like a certain death sentence -

' During the period the company carried on trading, selling to House of Fraser and independent shops.' Eggs all in one pram?

We predicted this 2 years ago - http://fantasyequitycrowdfunding.blogspot.com/search?q=+otti+prams

This is a classic small business with zero chance of scaling, so zero chance of a ROI for any investors apart from the owners. It is a fine business for those involved but it really shouldnt be allowed to raise funding from the public using, what seemed sensible but turned out to be, fantasy projections.

Otti Prams needs more money.

Otti has misfired. They are not the first and wont be the last using equity crowdfunding to promise loads and deliver nothing.

Now they are back for more cash  - a tiny amount at a company valuation of £500k. 

At least Crowdcube have been honest about their previous raise and the lack of delivery. But you have to ask why anyone would trust the latest projections when the last ones were a joke. Competition is hot in this space and it seems obvious to us that this crew hasnt got what it would take to make this work as anyhting other than a small t/o smalltime owner business. 

Have you seen the marketing budget? No its too small.

So what are they doing on Crowdcube?? 

New June and July Crowdcube results. Plus ca change.

More results for companies that have used Crowdcube to obtain funding, yet again illustrate that the methods being used provide very poor results.

When 95% of something continuously indicates that the something is not working, surely it is time for a change? Well apparently not, as Crowdcube continue to operate their flawed model; propped up as it is by fake news PR which is then regurgitated verbatim by independent bodies like Beauhurst and Crowdfund Insider as fact - see earlier posts. Beauhurst have now changed their article replacing 'exit' with 'aquisition' and acknowledged our verification of the facts - shame they are not honest enough to give us a credit. They have also taken down all their 'research' into other ECF exits etc. We are happy to help but hope they dont just reprint Crowdcube PR again.  

Here are some more examples for the months of June and July - 

Crowdcube - projected £3.7m profit  Filed loss - £4.7m

Grub Club - investors lost all their money in an asset fire sale. Called an exit by Crowdcube. 

Crowdfunder - projected loss £150k. Filed loss £500k

Birdsong - projected loss £20k. Filed loss £70k

Floodkit  - projected profit £589k. Filed loss 50k

Fourex - projected profit £2.3m. Filed loss £1.4m

Good Egg  - projected profit £209k. Filed loss £70k

Health Connected - projected profit £3.6m. Filed loss £70k

Cauli Rice - projectd profit £93k. Filed loss £960k

Tempus Energy - projected profit £6.5m. Filed loss £360k

ISO Spaces - projected profit £2.6m. Filed loss £250k

Shopwave - projectd profit £2m. Filed profit £89k

Circuitree - sadly closing down due to illness of founder. We wish him well in his fight. 

Teachpitch - projected loss £53k. Filed loss £80k

This is an illustrative, not an exhaustive, list. We have not included Brewdog as they are covered in a separate article on here. The only company we can find that recently filed accounts and is ahead of projections is Hopstuff and those were new projections - their original ones were a joke. Missing targets does not mean its curtains for the company but our records show that a combination of missing targets, late filing and other failings (ie SM inactivity, lack of new stockists, poor reviews, no app etc) suggests a struggling company. Very few of these for which we have figures, get turned around. 

The following companies are late filing - 

Energie Corp 

Otti Prams

Ubrew

Albion Tea

Socapps

Faction Collective - havent filed since YE 15. French run a different accounts system.

Easy Property and E-Prop (moved date to Sept 18).

Teachy

MBJ London

Monetaflex

We are pretty sure that at some stage this particular merry go round will explode.