Tuesday, 22 September 2015
Navmii pitch has false claims in it.
Navmii is an established and very well thought of app.
It is currently trying to raise £1m on Crowdcube and not doing too well.
In its pitch, the founder of the company claims that he sold Studentnet to IMPG in 1999 for $10m. This is very helpful information for potential investors looking for an exit with his latest venture - this guy has good form.
However, it appears that this claim is not entirely correct. In 2000 it was indeed reported by various media outlets including our BBC, that 3 students had sold Studentnet to IMPG for $10m, but these reports were inaccurate.
Had Crowdcube's DD Department taken shorter lunches or stayed at work for the afternoon, they would quickly have discovered that Studentnet was valued at $10m at the time of this deal but IMPG never paid $10m. See here - http://www.theregister.co.uk/2000/02/15/how_much_did_you_say/
The deal was multilayered and we will probably never know what money changed hands - suffice to say the story put out by Crowdcube is as usual nonsense.
Search for Studentnet now and it is no longer in existence. We couldnt find IMPG either.
The founder is described in the pitch as a successful entrepreneur, having built and sold two businesses. Studentnet we know about but we couldnt find the second one. He has started quite a few companies that have closed having not traded and Navmii.
This isnt really an issue with the pitch per se, they have other more important worries over revenue streams and growth. It is really just another solid indication that Crowdcube take severe shortcuts when it comes to due diligence; something the platform vehemently denies.
Surely it would be sensible to give names to claims like these so that people at least have a chance to check out their veracity?