Friday, 19 June 2015
The newest Crowdcube pitch The Great British Sauce Company has just launched - valuing itself at £1.4m today.
For that £1.4m you might expect some action. The sauces get favourable if limited reviews, they have new UK supermarket listings and a sales base of 12 months on a turnover of just over £100k. Its not much to go on; maybe it was intended to be a saucy little offer. Sales projections are the usual fantasy with expected 'buyout' (in line with the hundreds of other Crowdcube funded 'buyouts' that have never materialised) within 5 years, for the usual eye watering sums.They say they dont expect to have raise any more capital - how many times have we heard that one.
Then you have to take into account the amount of skin the founders have in this company. It appears to be next to zero. So if they are not confident enough to invest why would anyone be? You would have to be mad or enjoy a good thrashing with the birch.