Wednesday, 1 November 2017

Crowdcube success Ongallery needs switching Off

Ongallery raised £320k on Crowdcube in January 2016. Their latest accounts for YE February 2017 show they are insolvent. So where is the cash?

For a small company, £320,000 is a good sum a money to play with. You would expect to see something on the balance sheet to reflect its going. Sadly in this instance Crowdcube shareholders in Ongallery can see nothing.

We did warn you all when the pitch was live -

Fixed assets of £23k are lower than 2016 and current assets at £67k are no way sufficient to cover the current liabilities of £146k. Hence the red hue.

So in just over 12 months, the owner of Ongallery has managed to get through all of the Crowdcube money and some more besides. Apparently they have raised over £600k in equity funding. As the accounts are micros its not possible to verify the pitch claims.

Sir John Hegarty, the big name who lent himself to the Crowdcube campaign, has resigned. Their website is still live which is something positive  - but that was created before the money came in.

The Crowdcube pitch is full of the usual krap about how they will drive significant EBITDA etc etc. You need a licence to drive but unfortunately any idiot can start a business.

Apparently the CEO had extensive experience in start ups so maybe with this one, he was just unlucky. We'd still like to know where the cash is.

Pull the switch when you leave.

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