Faction Collective SA - designers and makers of snow skis, raised £775k on Crowdcube in 2015.
In their pitch for this money the company showed 'historic' financial data for YE June 2015 - the accounts for this period were not available during the pitch period.
In these figures - vetted closely by an intern in the Out to Lunch Crowdcube DD Dept - there were various figures given like turnover and losses for the year. The Crowdcube pitch completed in December 2015; so 6 months after the YE.
The figures given by Crowdcube are listed below on the left and put beside the real figures on the right, that were posted by the company with CH - all are in Euros.
Revenue 2,124,574 1,455,327
Net Profit (loss) (2,821,272) (2,396,384)
So the loss was considerably smaller than 'projected' (remember these figures were already historic when the pitch launched) due to a much reduced spend on marketing and personnel. But how do you explain a reduction in turnover of a third? It means that the leap to the 2016 revenue figures is one that not even Jon Olsson would attempt.
Dont Crowdcube investors deserve a more professional service?
The solution is very simple and is one we have calling for for 2 years - make all companies using this funding channel produce full accounts up to the date before their pitch goes live - and make them and the platforms liable for any trickery they might choose to try out.