3 of Crowdcube's latest pitches have a similar trait. They all have fake targets.
So they all declare they are raising £X but then a small note tells you that Y of X has already been raised off platform. This makes the platform look better, increases the progress on the 'funded' bar which stimulates interest and allows Crowdcube to claim larger raises in their Annual Total Jamboree PRing sessions. So sort of win win win and then sadly lose, for all those investors who failed to read the small print.
Crowdcube have been to known to do this without telling people - so maybe we should be thankful for small mercies. You may remember a certain promise of a £250k investment made on the Seedrs platform which has as yet never materialised. So who knows if these amounts do ever get invested?
Current target embellishments care of - Hope and The Chapar. In the Chapar pitch it is clear that investors have not understood Crowdcube's 'note' about this off platform investment of £250k. A Q on the forum actually asks if this amount is included in the current CC running total. Of course it is and of course the answer to the other Q is NO, CC will receive no commission on this amount. And finally the Q is correct in his comment that this amount should not be on the platform at all - it's a clear attempt to try to con investors by creating a false momentum. Investors on the platform have absolutely no guarantee that this £250k will be forthcoming - they have to take the company's word for it. Why have the FCA allowed Crowdcube to operate a system so obviously open to abuse? The A to the Q hedges around these delicate issues. Guilty as charged.
It would surely be more honest to just state the real total ie the raise amount less the off platform investment?
The latest one to try this has been Teachpitch, which is back for more cash after only 12 months since its first Crowdcube triumph of £300k. Target (apparent) £400k but £261k of this has already been raised separately off Crowdcube from two existing investors - we are not told who.
The company revenue for YE October 2016 was projected at £207k but it has managed just £7k. No new raise was ever mentioned a year ago. Of course this lack of progress has led to a doubling of the company valuation.
Hope these guys are not going to do any actual teaching.