Using our guessometer, we predict that October to December 2017 will be Crowdcube's best Q to date.
We estimate that by the end of this month, the Cube will have raised around £30m for businesses since October 2017. That is real money raised and delivered to the business, not the clock and bull figure they use for 'investments made' on all pitches including those that fail.
At their new commission rate of around 6%, that raises the Cube £1.8m for the quarter. Annualised that would mean a total revenue of £7.2m - which is below BE but its heading in the right direction. Q3 was a long way short of this at £14.4m, with £1m generated revenue (Cubist figures). So over a 12 month period things may not be so good. We also wonder on what percentage Just Park recently completed their multi million pound raise.
This is still pretty staggering. Given that they have not produced a single real winner in 6 years and have a long and growing list of scandals. Investors tell us that they wouldnt touch them and then secretly go ahead and invest what they call 'just a small amount'. Well lots of small amounts makes a big pile. The very mantra that started this whole ECF thing.
So for now we think the company will make it to Christmas and beyond. If in 2018 it eventually manages to deliver a winner - just one would do - then it might just have a future. Currently it seems investors are not that worried about the DD, or lack of it. Or the fudging of the stats or the gross misrepresentation that so many of their pitches employ. Lost money in Crowdcube funded businesses has left ROI for dead - disappearing over the horizon. We will be producing an updated list in the next week or so. It will make little difference.
Like moths to the flame they keep coming. Stop the moths and the light goes out.