Wednesday, 16 December 2015
Stickyboard raised £56k on Crowdcube last year.
In the pitch they planned to raise another £200k that year - presumably to activate the plans that was projected to give them a handsome £62k profit.
Clearly something went wrong and accounts for YE March 2015 show a loss of £50k which leaves the company with a negative book value of just under £200k. Capital raised was only £65k.
So as with nearly all Crowdcube pitches, the financial projections have turned out to be total nonsense. Investors seem to have been led to believe that the extra £200k was a given. Failure to raise this is a good enough explanation for the continuing losses. Working capital being an essential.
It would be nice just once and while to report on a company financed through Crowdcube that has got somewhere close to its projections.