Filmore and Union is the latest Crowdcube success to join the scrap heap.

On, on, on we go, as if everything is fine. But it is not. As yet another Crowdcube success, the cafe chain, Filmore and Union, goes into administration. It used Crowdcube to take £860k off punters with promises of profits in 17/18 of just under £1m. Dream on.

Why cant we at least see how wrong this is and do something to change the outcome? Of course you will get the usual glib response you always do from the management at Crowdcube. They took their commission on £860k years ago.

Filmore had a much larger investor than Crowdcube. BGF (no not something out of a Dahl story but the Business Growth Fund) put in £3.5m in September 2017. That was a good call guys.

We warned about this outcome in January 19 - here 

The administrators have, according to a piece in the Beeb, managed to sell off the production kitchen and ten stores. That will not provide any crumbs for investors.

Onwards.......................... or maybe not. We had this sent to us today 28 May - disgraceful......

From the staff at Filmore & Union, Skipton. We regret to inform you that this site is now closed. All members of the team have been made redundant, with no notice period or payment and have been treated unfairly by those in higher management, leaving the government to pay us for their mistakes. We are all due six weeks of pay including holidays (AND the compensation pay - that we will not receive). Please boycott other Filmore & Union sites from now on, all they care about is their money.

Feel free to join our group --https://www.facebook.com/groups/2251632458261055/

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.

Filmore & Union win valuation of the Millenium.

Crowdcube valuation of £5m today.

It's just a little embarrassing.