It's a crazy world. Just as Crowdcube complete an almost successful £7.4m round for themselves (target £8.5m), Verv, a recently funded Crowdcube success, has opened a new campaign with a 20% discounted valuation.
Sounds like the sort of thing investors might like to discuss on an independent forum - like our new ECF.Buzz.
It is even crazier that the director of the Verv company, answering a Q on the CC forum about how the original valuation was created, has stated that they used discounted cash flow. DCF cannot be used without a good depth of historic revenue data. Verv had no such history. He then compounds this by stating that they have lowered the current valuation in order to raise much needed new funding! Sort of explains a lot doesnt it.
Had investors in round one been better informed, by using ECF.Buzz, then they might have persuaded Verv to lower what has now been shown to be a nonsense valuation and spared everyone this nonsense. Maybe had Verv used ECF.Buzz, they might not have made themselves look so totally ridiculous.
You can see why ECF.Buzz is such a good idea here - https://www.indiegogo.com/projects/ecf-buzz-the-crowd-investors-information-centre/x/19804529/
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