Cornerstone is a Crowdcube blue chipper. It took £876k off punters in 2015. Projections showed a profit for YE Dec17 of over £600k. It has just filed losses for that year of £3.5m (£2.4m 2016).
Now of course that doesnt matter - the company raised another £3.5m last year in a round led by Calculus Capital. Its a dead cert. Dead anyway. It's another Crowdcube company that can boast Will Hobhouse as one of its backers. What do you make of these conflicting messages? Exactly.Expect more funding calls (dilution) before the six o'clock shadow. They have a plan, it's just not the one Crowdcube published.
Shame really. I'm using their shave kit and I like it a lot. Fortunately, I'm not an investor in the company
ReplyDeleteI think quite a few people use it. Big difference from a successful small company to one that will give investors a good ROI. That's the bit most people dont seem to understand.
ReplyDeleteAcquiring and (more importantly) retaining customers with a subscription model is eye-wateringly expensive. It's a shame that Cornerstone are struggling - the product is great. Lots of big players moving into this space in the UK at the moment, particularly Harry's and Dollar Shave Club.
ReplyDeleteWho's to say they're struggling, from my understanding the unit economics are positive and this loss is an investment in future profits. Yeh it doesn't match the projections, maybe they didn't have another £3.5m raise in the projects, hence they would have had to be profitable.
ReplyDeleteMy gut says, DSC (Unilever) or Harrys purchases them in the next 12/18 months.