Monday, 25 May 2015
Here we go again
Hop Stuff funded via Crowdcube in summer of 2013. A new craft brewer in London. Original idea.
The Crowdcube projections showed the usual flying start - year one profits of £96k and cash positive year end of £95k.
Accounts filed recently for year one show a loss of £37k and an empty cash account with £2k of stock. Assets in the projections are 3 times the actual assets and the company had £45k of outstanding trade creditors. As far as we can tell the business is still going and you never know it might one day make the owner a living. ROI for the crowd - come on, please.
When will people learn - Crowdcube produce fictitious, highly inflated projections in order to sell you the firms' equity so they can pick up their commission. Look at the large number of examples here.