Monday, 7 September 2015
Wool and the Gang are here.
Wool and the Gang value themselves at around £8m. Not bad for a company that has never made a profit and showed a loss of almost £1m in 2014. All but one of the original directors have resigned, as has another who joined a year after the start.
Now you wouldnt know this from the Crowdcube headline introduction to this outfit.
The headline names Jade Harwood, one of the founders, as still being a driving force - yet she resigned in 2013.
The 2014 performance was in fact a spectacular success - turnover up by 35% etc etc. No mention of any losses. Of course having Index Ventures as your dad helps, its a bit like having Oxbridge on your CV. I suppose they used DCF to get to £8m despite having no history of the company's cash flow to work off.
This is not the first time that Index Ventures have used Crowdcube to promote one of their fledglings and it wont be the last. But just remember who you are dealing with and do some serious DD before jumping onto this one. I never like it when more than 50% of the management jump ship.