Wednesday, 1 July 2015
Another Crowdcube success disappoints.
E-Car Club funded initially in 2013 on Crowdcube, then received a £500k investment from Ignite early in 2014.
Plans according to the CEO were to open hubs across southern England and London in 2014 - adding to the ones in the Midlands. These plans appear to have come unstuck as they have only one London hub and non open south of here.
The latest accounts show a loss of £330k to YE 9/14 - not part of the plans presented to Crowdcube investors. The £500k 'investment' appears on the accounts as a long term liability and the company has a negative book value of £(182,500).
This peach of Crowdcube PRing appears on the Crowdcube website - it helps us understand how they have managed to get where they are today - certainly not through any knowledge of business valuations! This a direct quote from Darren Westlake - one CC's founders. It should really worry you.................
''E-Car Club raised £100,000 in January 2013, the company was valued at £500,000 and they gave away 20% equity. This funding round means that those 58 Crowdcube shareholders have seen their shares in E-Car Club double.
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