Filmore and Union may make it with backers BGF putting in £3.5m but they are miles off their Crowdcube numbers.

Filmore and Union told Crowdcube investors that YE Mar 2018 they would see the company making profits of just under £1m. Filed accounts show losses of £425k.

No need to panic as the company refuelled in Sept 2017 with a £3.5m investment from BGF (Business Growth Fund). Still it is yet another example of just how wide of the mark these Crowdcube projections are. And yes it does matter as the valuation the company gave itself in 2016 when it raised over £800k from Crowdcube investors, was largely based on future performance - ie the projections. This is the valuation that set the share price for investors.

It may of course all come out in the wash if the company make it. But it doesnt make sense to us as a way to run an investment platform.  All the evidence points to grossly exaggerated projections leading to grossly exaggerated valuations. Which more often than not end up as train cash.