Friday, 15 December 2017

Cgon turn £14m profit into £200k loss, 3 years after funding on Crowdcube



Cgon are right up there with Crowdcube when it comes to inventing things. Trouble is, this time it turns out to be their financials.


In 2014 Cgon raised £160k on Crowdcube for their anti pollution vehicle device. We wrote about them here as claims made in the pitch didn't seem to add up. Now they do. We were kindly sent this link by a reader - https://www.briskoda.net/forums/topic/388231-ezero1-device-cgon/

It would also appear that Cgon have been smack wristed by the ASA for making what seem to be outlandish claims about their widget. Looks like another case of Crowdcube being taken for the monkeys they are. More nuts guys? - https://www.asa.org.uk/rulings/cgon-ltd-a17-386763.html

3 years later, they are still making large losses and have pushed themselves into the red for YE Mar17. No new money has been raised since according to CH. So you can either expect them to appear at a Angels meeting near you soon, or close. They could do both!

6 comments:

  1. All from memory

    they did a private raise about Sep 15

    They originally sold it along with a remapping service and claimed it would make your car go faster and use less petrol.
    They now do not re-map and claim it makes your car use less petrol and produce less particulates. Potentially good for london taxis etc.

    There is an interesting discussion thread here
    https://www.briskoda.net/forums/topic/388231-ezero1-device-cgon/

    ReplyDelete
    Replies
    1. Thanks - that blog link is a eye opener and its still running. Could this be a complete con?

      Delete
    2. Also found this in the exchanges - https://www.asa.org.uk/rulings/cgon-ltd-a17-386763.html

      Delete
    3. Well, speaking as a small shareholder, it doesn't look too great.
      I was/am a supporter from the pov of a) local jobs and b) green(ish).

      Please note that the linked comment thread seems to be occupied by a small number of people with strong opinions.
      They clearly understand the first law of thermodynamics (no free lunch) but do seem to miss the thing cgon is trying to do - finish off the leftovers - by adding a small amount of H and O (they claim) you have a hotter and more complete combustion.
      I make no claims for it myself. I do not have one.

      What depresses me is that (and this ties in with so many of your posts) cgon do not seem to be approaching this in a businesslike manner. They have been in business for a number of years so far.
      There has been enough time to get an evidence base together.
      If they did not know how, they have a testimonial from an Exeter college lecturer. It sounds like a good project for students.
      There is a university nearby.

      Even if it did not increase MPG, if it did reduce particulates from diesel engines, that is a current hot topic they could use to sell the product.

      It does seen to me that there are unlocked doors that they are not opening.
      OTOH, if (..evidence either way welcome..) the product works, as modifying a vehicle is a fairly unusual thing to do, a trade sale to a manufacturer always seemed to be the most likely exit.


      Delete
  2. Well yes you do have to be careful when using blogs! Overall the impression left by Cgon is not good. As you rightly point out a successful business from start up needs three key ingredients; something to sell worth buying,channels to achieve this and a team able to deliver both.

    ReplyDelete
  3. Is the company name perhaps pronounced with a silent “g”?!

    ReplyDelete