Eprop investors are the latest Crowd to lose out.

Easy Property raised £1.36m from 376 investors on Crowdcube in 2014. The company, also known as Eprop, was valued then at £60m. 

After going nowhere, they did a deal with another group also going nowhere. The result has been a forced sale to Tosca Aquisition, who have paid a pittance at £17.85m. Crowdcube investors have lost out again. Although technically this business has been sold rather than dissolved so we are sure it will get their approval. After EIS and loss relief some investors might even break even.......doesnt that tell you something about how stupid we are being.

I would say that punting out Eprop at £60m in £2014 could be classified as highly misleading. Clearly today's value would confirm that. So FCA, what would you say?

Look guys you are really making this far too easy for us. We yet again predicted this mess here . Our members will be able to benefit from our knowledge and your investors will no longer put up this sort of thing. Let me know when you come to your senses and want some advice.

Spending £48 a year on ECF.Buzz, to avoid losing many hundreds, is looking increasingly like plain common sense.  

Easy Property follow merger with CPEA, with a capital raise and change in pricing strategy. Will it make any difference?

Easy Property helped themselves to £1.35m on Crowdcube in 2014. Having lost over £17m in the last two years, we find them refinancing and announcing a new (to them) pricing strategy. The big Q is, will this put them top of the pile? 

People we speak to say probably not - it will just extend their inevitable death. As you would expect the Crowdcube projections (does anyone read them?) showed the company making north of £10m in profits by the end of 2017. In reality they made a loss of £10m in the year to September 16. 

The new pricing strategy is more about PR than anything substantial or groundbreaking. They now take a 'marketing' fee of £295 up front and only claim the sales fee of £595 if the property sells. In the words of their CEO they didnt like charging if properties did not sell. Do they really think calling a £295 fee by another name will fool the public?

I suppose they had to do something with the losses mounting. 

The major player and the one everyone wants to beat is Purple Bricks. They reported losses for the YE Apr17 of £4.5m, under half the previous year and increased revenues by 151%. So Eprop have a long way to go and will need very deep pockets to overhaul the sector leader. The recent round at about £30m is a mere spit in the bucket. 

Whatever happens, Crowdcube investors have no control and must hope that the roller coaster is built on solid foundations. These latest developments suggest they are firefighting which is never a good sign. The for sale sign may well go up, for the company, next time.

Easy Property does a deal with

Easy Property or Eprop raised over £1.3m on Crowdcube in 2014, valuing the company at over £60m. They then got themselves into a right mess and have now relaunched having done a deal with GPEA. The business model is now B2B2C as opposed to B2C. 

It's unclear what the exact deal entails but the company recently replaced most of its management team and from figures at CH, raised around £16m in an equity deal with GPEA, which massively dilutes CC shareholders and is technically a Big Dipper of a downround.

Still the good news is, at least they are still going. Where we go from here is anyone's guess. 

Please fasten your seat belts for take off and good luck.

Easy Property create new world record for the worst projections ever.

In what is becoming a boringly repetitive story, yet another Crowdcube funded company, Easy Property, has crashed its projections. The results are quite spectacular. 

Easy Property raised £1.36m in 2014, from 376 Crowdcube investors. 

The company admits in its latest accounts that its progress has been a little slower than expected. They also say that they will have to raise even more money (they have already blown the 2014 forecasts) this year.

Here is a comparison between what they told people would happen (and what they both valued the company on and sold the shares using) and what has actually come about -

2015 - Revenues £  144k ...................Projected £6.8m

           P&L         -£6.77m..................               -£4.99m

2016   Revenues £ 874k.....................               £23.7m

           P&L         -£10.94m................               £2.67m profit

This creates a gap for the last 12 months, between what they told investors would happen and what they have actually delivered, of a world beating £13.5m in the P&L. 

Since 2014 they have raised over £24m in equity finance, when they predicted only £12m in total. As we know, they are about to have another go. This new new round is not in the projections, mind you, nor was the last £12m.

Since 2014 they have delivered next to no revenues but the administration costs to achieve this have come in at over £18.6m, when the projected figure for healthy revenues was only £16m.

All of this according to Seedrs' Jeff Lynn is perfectly normal and to be expected. We beg to differ.

The company was valued at £68m in 2014 when it appeared on Crowdcube. What value now? 

We wish all 376 investors (who are according to the Directors are going to finance the next round) the best of luck.