Two Crowdcube brewers struggle to deliver a full pint.

Seven Brothers Brewery and Bellfeild Brewery are both raising new funds - having come nowhere near to their Crowdcube projections. But they dont tell you that bit.

We have been here before  - in fact I think we have been stuck here for several years. When will platforms be forced to declare the full facts about previous raises? Im reminded of a mate's joke when he was served a short pint - he'd say to the barman - '' Do you think you could fit a double whisky in there?' To which the barmen would smile and say ''yes of course' as he reached for the Walkers. 'Well then' my friend would say 'stop passing that off as a pint and fill it to the top with beer'. We wouldnt put up with short pints so why do we put up with short information?

Im fine with companies missing projections - it happens. Although when it happens all the time it suggests something is wrong with the way they are creating the numbers. But then to pass off the actuals as progress, when they are only half of those recent projections - something is not right. You cant tell investors that your company is in good health when your revenue if £1m as opposed to the £2m you wanted. That is simply crazy. 

Both of these brewers know that have come in well short of the lines they set to gain investment previously. But in both cases that is ignored. Existing SHs will know the facts (well some will) but new guys who missed round one, will not. And they are being duped - with the help of the platform. They are being asked to believe the new pitch and the PD that goes with it. Yet they are not armed with the important information that these companies have failed to deliver on their original plans. In fact the picture painted is the exact opposite. 

And what of the valuations. Well Seven Brothers has now put itself out at £8m pre money (they are raising £500k). Back in 2016 it was valued at under a million when raising just £170k. Since then they have delivered around a half of the revenue they set themselves  - according to their own numbers for 2018. Projected profits for 2018 of £500k have now been invested in this progress - so that means losses. They also talk of a new trading platform so investors can sell their shares. Come on guys - who is going to take that seriously? 

We have the real figures and you would be surprised just how far away these two are from them. So be aware of that before you invest. It is entirely possible that teething problems have now been ironed out and they they will go on to be successful. But it helps to know the facts.