Saturday, 17 October 2015
Dont believe what you are told on Crowdcube
Take as an example the current pitch by Playrcart.
This company raised £150k on Crowdcube in January 2014. Whilst the pitch was live, a potential investor asked a very simply question - ''Will you be raising more money in the future before you exit?''
The answer was also very simple - ''we will be raising a Series A round from VCs and then we will exit''. So no more rounds on Crowdcube then? Yes that's right no more rounds on Crowdcube.
Ah. Glad we have that on record. Of course Playrcart is not the first and certainly wont be the last pitch to expand the truth balloon.
You might also like to know that in this brief exchange back in 2014, the potential investor was informed that discussions with VCs were ongoing and looking good - clearly a nice little tempter. They didnt go that well as no VC has invested in Playrcart. This may well explain why they are back on Crowdcube.
Also, the founder of Playrcart, promoted himself using the success of another company he founded, Gas Agency for which he claimed he had been offered a six figure sum. The last accounts filed before this company was subject to a compulsory dissolution (its 5th attempt to close) showed profits of £744. No assets and no investment.
Of course its clear to see the progress this company has made since January 2014 - its Crowdcube value then was £1.25m and now its Crowdcube value has more than doubled to £3.5m*.
These are busy time for Pinocchio.
* Please note that Crowdcube values can go up as well as up but never never down. Of course Crowdcube take absolutely no responsibility for anything, ever.