Tuesday, 6 June 2017

Is Ernest mad?

Ernest is on Crowdcube. He's a fintech app. Either we are mad or he is.

Ernest doesnt really exist yet. He doesnt have any customers and hasnt been sold to anyone. Ernest is apparently worth £4m in his underwear.

That's not the crazy bit.

This year Ernest will bring in under £10k of revenue - projected.

Next year Ernest will bring in over £1m of revenue from around 15,000 newly acquired customers. The CPA this equates to, is approx £10, based on their answer to a CPA query. Now that's the mad bit. (We have ignored revenues from the white label plans given the time frame). 

The idea might work but the budgets certainly will not. They will run out of money well before they obtain 15k new customers and will need a lot more to get there. So dilution or extra investment is a given.

You do have to worry a little about the management that put together and stands by this budget.


  1. A Wilde fantasy?

  2. Haha!

    Am I the only person in the world who doesn't want a freemium bot coming anywhere near my personal finances?!

  3. This looks a bit of a long shot. They want the man in the street to spend £60 per month with them to access their own bank account and all it can do is tell you what you did in the past. You cannot as far as I understand it initiate transactions. Also you have to trust the company to look after the credentials to your bank account!