Cauli Rice smash their target of £400k in just one day on Crowdcube.
One can only admire the sales craft of the Cauli Rice ex Righteous, team. They have done it again. For the umpteenth time they have raised capital on Crowdcube. Yet in all of those raises for both this company and their previous wizard idea Righteous, they have never ever once got even close to the projected sales and profit figures they use to sell the equity. Not once in all those attempts. Not even close. Often not even half way.
And they have done it this time on a valuation of £8m - up from around £5.5m PM just over a year ago (in the current pitch their valuers, Blue Box, say the last round was at £7m, which is wrong). An increase that is the consequence of missed targets and larger losses. This is a valuation suggested by their hired valuers - the same ones who were involved with the business in the first raise at the end of 2014 and appeared in that video, when the company was valued at around £2m. All this based on future prospects and a patent. The patent is genuine. No mention in the plans of the winter cauliflower disaster that marked their initial progress. Not that important - just gets in the way of the projections I suppose.
Projected GMP is to rise to 50% from its actual 21% level today - which should have been 29% according to the 2015 set of projections or 34% if you like the 2014 pitch projections. Take your pick. But as they like to say there - if we had a crystal ball, we would be millionaires. Apparently making the product in the US for the US market by 2018/19 will bring about this margin gain. Of course if the actual margin in 2018/19 is around 30% then the figures this valuation are based on look a little different.
Call it crazy but they do now need to deliver. £2.5m of Crowdcube investors cash, not to mention the Righteous money, has backed them. Surely their time has come - new projections and very healthy but also very new, current listings must see them succeed. Great plans for the US and for development in the EU.What on earth could go wrong? On second thoughts maybe keep a tight hold of your hats for now.